Setting Financial Priorities

Setting Financial Priorities

While many may say that money cannot buy happiness, money still plays a​ significant role in​ our lives. Without money, we basically cannot have roof over our heads, food on the table, clothes on our back and a​ whole lot of​ other necessities that we need money to​ pay for. it​ is​ of​ utmost importance that when you start handling your money, especially when you start to​ work you know your financial priorities as​ well as​ the stages to​ go through in​ order that you will be financially independent way into your golden years.

When you are around 20 to​ 25 years old, this is​ usually the stage when you just enter the workforce or​ have been working already but not that long. Take full advantage of​ your young age and save money. Saving between 10% to​ maybe 20% (if you like) of​ your monthly income would be ideal. it​ is​ also during this stage that you should start to​ build up your credit standing by applying for a​ credit card and regularly paying for it. These years though are not all about being stingy to​ save. This would also be time when you would be having lesser financial obligations giving you the chance to​ do things that you want like maybe traveling, etc. Take the chance while you are still very young but of​ course save a​ considerable amount of​ your money for future use.

When you are between 26 and 30 and have just followed saving money in​ your early 20s you should have a​ modest savings by now. You could afford more or​ less to​ put them in​ other types of​ investments aside from your regular time deposits (though they would always seem to​ be the safest). Continue to​ save and give some thought into your long term career goals. You cannot afford to​ still be job hopping during this stage especially if​ you are nearing 30.

Moving into the age above 30 would require you to​ be spending on a​ wedding, on a​ home or​ raising a​ family of​ your own. if​ you have a​ good credit history, you could get a​ loan with the bank for your house. Now would also be the perfect time to​ get a​ health insurance plan. When you are approaching 40, you will be at​ the peak of​ your earning so work hard for your retirement to​ have enough to​ live comfortably during your retirement years. Work towards paying off your debts and preparing for future medical expenses. You should have enjoy your golden years.

Setting Financial Priorities

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