Goal setting is an important step in the journey towards being financially secure. No matter what your age, a goal keeps you rooted and helps grow your income and solidify your retirement plans.
You could, however, be clear of your goals but not quite know where to start when it comes to implementing them. And, therefore, to help you kickstart this journey, here’s a list of financial goals that you ought to set for yourself, based on your current age.
Financial Goals To Set In Your 20s
Goal 1: Steer clear of lifestyle inflation
Goal 2: Equip yourself with good financial advice
When you are in your 20s, the temptation of lifestyle inflation can be alluring. It’s when you start seeing your peers driving fancy cars, living in posh condominiums and travelling to exotic travel destinations every now and then. It’s easy to feel tempted to follow in their footsteps to try living ‘the life’. But it’s also prudent to check yourself and figure out your boundaries. Try these 4 ways to avoid the temptation of lifestyle inflation if you’ve found yourself thinking about it a lot.
Arm yourself with good financial advice. Count this as a mandatory goal in your 20s because this is the stage in your life where you are eager to grow your wealth but often do not have the right expertise to do so. So, you need quality financial advice from a trustworthy financial advisor to guide you in the right direction.
Financial Goals To Set In Your 30s
Goal 1: Adopt good debt management habits
Goal 2: Start your wealth accumulation journey today
As you enter your 30s, you start to chalk up more financial commitments. From car loans, housing loans and credit card debt, the amount of debt begins creeping up steadily as your life commitments increase. Not managing debt well during this phase is known to crush finances and affect several financial goals. Adopt a good debt management habit to avoid this and seize control of your credit card debt.
The other goal that you need to put emphasis on is your wealth accumulation journey. Concerns like constantly worrying about money for retirement and the possibility of insufficient funds in a crisis (e.g. retrenchment, illness) can bog you down. So, make sure you take that first step to start accumulating and growing your money. We’ve covered some handy investing tips to help get you started as early as in your 20s .
Financial Goals To Set In Your 40s
Goal 1: Balancing support between dependents as the sandwiched generation with good planning
Goal 2: Don’t neglect your own retirement plans
As the Sandwiched Generation, you have to juggle between supporting your parents and your children. The problem is that 1 out of 2 Singaporeans are finding it difficult to meet the needs of both our parents and our children. Many of us in our 40s are starting to feel the heat of this. That’s why it’s only wise to constantly review your financial planning during this phase.
At the same time, while you are taking care of the needs of your dependents, don’t forget about your own financial needs. Move your own retirement plan on track to be able to maintain your current lifestyle even after you retire.
Financial Goals To Set In Your 50s
Make plans for yourself too, not just your family
As Asians, we often put our family’s interest above and beyond our own interest. It’s no surprise that most Singaporeans who are past their retirement age are still making plans for their families. Around 78% of Singaporeans in this age group have been actively managing the family’s finances.
In the midst of this, you sometimes forget to make plans for yourself to sustain your own lifestyle post-retirement. Having worked so hard all your life, you owe it to yourself – now is the time to enjoy what you have earned and reap the rewards of your hard work.
Get, set, goal for 2020
If this equips you with a basic idea of what goals you should be setting, it is time to kickstart it for 2020. For the more ambitious among us, take it a step further and build a personal finance roadmap for the next 5 years of your life.
Trust us, you will thank yourself 5 years down the road when you look back at this moment in your life.
By Si Jie Lim
Most people think personal finance is dry, boring and full of confusing jargon. But the fact is it can be simple
and interesting. That’s why Si Jie is passionate about turning personal finance into an easy and fun topic that everyone can relate to.