Thursday, 6 January 2011 22:30
It’s true that everyone can benefit from saving money, but the focus of your savings efforts is different depending upon your current stage of life.
When you’re a teenager, putting money aside will make paying for education expenses much easier and help you buy a vehicle that’s more than a clunker.
During your 20s. Now that you’re establishing your “household,” having savings can help you pay bills in case you lose your job. Putting money aside also makes it easier to obtain credit – and savings can help you make the all-important down payment when you’re ready to buy your first home. It’s also never too early to start saving for retirement.
In your 30s, your focus is probably shifting to your kids. You’ll want to have money available to meet surprise needs and cover the cost of their activities. You’ll also want to start putting money aside for their college costs – and for your own retirement.
As your 40s arrive and your kids approach college age, it’s time to invest seriously in their education plans. You should also be concentrating on your own retirement goals. This is a peak earning time for many people, so be sure to save as much as you can.
During your 50s, your kids are probably getting their own families started. Your earnings are still high, so it’s a good time to put more aside for the future. Many people also like to travel at this time.
Moving into the 60s, retirement is probably your major focus. Having adequate savings is important at this time of life, because health care tends to become more costly. Many families discover that just one unexpected health problem can eliminate much of what they’ve saved.
In your 70s and beyond, you should still try to preserve your savings. Social Security does not provide enough income for most people, so they rely on what they’ve saved to help them maintain the quality of life they desire. Having a strong savings balance can also help you handle any medical expenses that Medicare won’t cover.