Financial Strategies for Every Age

Money serves different purposes during one’s life. Spending, saving habits and career choice factor into these different stages of life.

As individuals progress through life, their financial strategies often change. Monetary needs of a 20-yearold are different than that of a 50-year-old.

This Q&A will help individuals achieve financial independence regardless of his or her age.

Q: How do you track your spending?

A: Inventory your expenses. Write down what you spend and where. This can be recorded in a notebook or on a phone or tablet. Once you see an overview of your finances, you can reduce costs if necessary. This will also give you the opportunity to set financial goals.

Q: How do you establish – and maintain -- a financial foundation?

A: The quickest way to do this is to open checking and savings accounts. These accounts are your core tools to manage your money. You can use your checking account to track your spending to help with your budget. Tracking your money can be done online using a smart phone or computer. This process will help you map your income to match your expenses so you aren’t living beyond your means.

Q: As I get older, should I adjust my financial goals?

A: Priorities change, so you’ll need to adjust your financial goals. From buying a house to planning for your children’s college tuition, these long-term plans factor into your financial goals. You’ll also want to eliminate as much debt as possible, such as student loans or credit cards, before you take on other debt, like a home mortgage or loan to start a business.

Q: When is the right time to retire?

A: Most people retire when they’re in their 60s. You’ll need to make the decision to retire after assessing your funds to see if you have achieved your retirement savings goal. Consider when – or if – you want to stop working and start collecting social security. You’ll also need to calculate when to start spending your retirement savings, including the tax consequences and other factors. You’ll need to revise your household budget to accommodate your life in retirement, including adjustments for cost of living and expenses such as travel.

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