Every decade of our life, from the time we start earning, commands a different approach towards how we invest our money. Having said so, there is a large number of people who struggle every day to manage their finances and get stuck with huge debt or financial crises during a pandemic, as now.

There are multiple options to choose from today when taking the first step of financial planning. Having said that, whether you’re a beginner or a seasoned investor, it is suggested to take a systematic approach towards handling your finances to reach the desired goal. One of the secrets of earning higher returns on investments is to start early. Starting early and developing the habit of saving and investing – be it small or large in a planned way, will help you reach your desired goal easily. Even though most people want to follow a healthy financial lifestyle, they don’t know where to start.

Here’s an overview of how the investment climate could change with your age:

In your 20s: 

When starting your career in your early 20s, most do not have any financial obligations and therefore can save some money out of your earnings. Experts say, most people consider saving and invest boring in their 20’s, and think it’s not necessary now, which is wrong. Having an adequate health insurance plan will take care of rising medical bills and health emergencies. Having a medical bill is cost-effective especially if taken early. Do not only depend on your employer’s health insurance, if your company provides health insurance benefits. Keep in mind to increase the cover, as most companies provided covers are not enough.

In your 30s 

Get serious in your 30s – it is the time to cut down unnecessary expenses. For instance, in your 30’s you should start thinking about long term goals like your retirement and start saving for it. Take note of other long-term goals such as buying a house, child planning, etc. Additionally, it is imperative in your 30’s to get a life insurance policy. And if you have already invested towards a life insurance policy, keep checking to see if you are adequately insured.

In your 40s

The 40s are the time to get your finances in order, by getting rid of any debts. As you are closing in on retirement, it is suggested to pay off high-interest debt. Additionally, make sure your retirement savings are in order, your life cover is sufficient (for your family) and your emergency fund is tucked away.

In your 50s

There is not much to do here if you have planned your finances properly in your early stages. In your 50’s your investments should be in place, and if you continue investing, take a different approach by concentrating more on debt-free funds or low-risk options. At this age, you should concentrate on maximizing your savings, and not take high risk.