Practical Financial Goals For Every Decade of Your Life

Updated: August 30, 2022

What financial goals should you strive for in your 20s, 30s, and until you retire in your 60s and beyond? Here’s a list that can serve as your guide.

In your 20s

Build an emergency fund
Ideally, this should be at least 6 months worth of your necessary expenses. If you achieve this, you would have also learned the habit of saving, which is essential for attaining financial independence.

Be a responsible credit card user
Being responsible means paying your credit card balance IN FULL every month, and not just a portion nor the minimum required amount. This will teach you how to properly manage debts.

Understand how paper assets work
I’m referring to time deposits, government and corporate bonds, UITF and mutual funds, and the stock market. Learn what they are, how they work, why they exist, and how you earn (and lose) money from them.

Establish a healthy lifestyle
Your unhealthy habits during your 20s will come back to haunt you down the road. Medical expenses are one of life’s biggest stressors, minimize them by taking good care of your body.

Start your retirement fund
Yes, start building your retirement fund as soon as you have income. It doesn’t have to be a lot, just an amount that’s comfortable for you. Put it in an equity fund.

In your 30s

Establish a strong and steady cashflow
People buy a car, get married, secure a home, and start a family during this decade. You’ll need money to do all those things, which a strong and healthy cash flow from a career or business can provide.

Get insured
If you haven’t yet, then it’s time for you to secure the necessary life insurance and long-term healthcare insurance, especially if you already have your own family.

Build your paper assets portfolio
It’s now time to apply what you learned and build your investment portfolio. It’s best to diversify with low-, moderate-, and high-risk types of investments; as well as a good mix of bonds, stocks, and investment funds.

In your 40s

Create passive sources of income
You can’t work forever, that’s why you need to do this. Popular sources of passive income are real estate rentals, business dividends, royalties, and commission income.

Design your retirement
At this time, you may already have a good idea of where you want to retire. Take it a step further and create a retirement plan, and see how much it will cost to turn your dream retirement lifestyle into a reality.

In your 50s

Work on your retirement plan
How do you see yourself when you retire? Running a small business? Traveling the world? Pursuing a new career? Whatever it is, it’s time to prepare your mindset and your finances for that chapter in your life.

Have no more liabilities
Retirement is just around the corner. Make sure that your debt obligations, particularly any loans you have, are paid in full before you retire.

Build enough passive income to cover your necessary expenses
You cannot depend on your retirement benefits alone. That is often not enough for your cost of living expenses. Augment your cash flow with passive income sources for a worry-free retirement.

In your 60s and beyond

Do estate and legacy planning
Memento mori — remember death. It will eventually happen to each of us. Make sure that our loved ones won’t become financially burdened when it happens.

Realize your retirement plan
Whatever, wherever, and however you wanted your retirement to be, it’s time to follow your plan. Don’t be afraid to redeem investments and surrender insurance policies, if needed. This is, after all, the ultimate time to enjoy all the money you’ve saved and invested through the decades.

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One comment

  1. I will both agree and disagree on the 60 and beyond line. Yes, anyone with valuable assets should regularly update their estate plan, that is wise. Where I depart from the retirement plan: I am just getting my second wind. While I can not say for a fact that I will live to be nighty or one hundred, I am having a blast now at sixty five. I was widowed fifteen years ago but God has given me a second chance at happiness. My very well educated second wife had several great business ideas but little time to develop them. She worked constantly and earned very good money only to give a lot away to deadbeats who really did not appreciate her help, they just took advantage of my wife’s good heart.

    Since our marriage three years ago, two new business have been created and one has taken off with parabolic growth. These days, I am as busy as I have ever been. It brings me great joy to see deserving, hard working people grow their business with the assistance they get from my wife’s enterprise. I was touched deeply when I heard back that a recent client of ours stated that: “they have true business ethics.” You can not purchase advertising like that at any price. My wife has even brought her YaYa of many years into one phase of the business and the woman now earns more than she ever has before in her life. My wife explained to “YaYa” that we will not always be here to help her out with family emergencies. Now “YaYa” has several growing income streams and may soon be able to afford a modest home.

    Now you know one of the reasons I can honestly say “it really is more fun in the Philippines! ” As for retirement, what is that?

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