Even if you’re useless with money, you know that you’re supposed to tuck a little away each month for somewhere further down the line.

In concept, it makes perfect sense, but the problem is that the one-size-fits-all model of saving, that’s supposed to work from the time you start making money to when you retire, doesn’t actually work.

This is because, at different stages in your life, your financial position, lifestyle and priorities are different.

It makes sense, then, that the way you save should change and grow as you do.

According to BusinessTech, assessing your life at various stages will enable you to not only plan ahead, but also target certain financial achievements that will ultimately ensure your well-being.

Starting out and becoming established (ages 18 to early 30s):

At this stage in your life, you’re thinking about studying, buying a car, renting an apartment and growing your independence. Retirement is probably the furthest thing from your mind.

This is a good time to develop some healthy habits:

• Make sure that you pay yourself first. Decide what you want to put away and make sure that it’s the first thing that you do.
• Don’t compromise. Consider taking out a 12-month fixed investment. The money grows and you can’t spontaneously withdraw it.
• Put together a budget so that you learn to live within your means.

Consider starting a long-term fund like an investment portfolio that’s aligned with lifestyle goals, such as education and buying a house. The earlier the better.

Moving on and beginning to accumulate assets (mid-30s to 50)

By now, your formal education is complete, you’re working on a career and focusing on family and/or relationships, buying property, the future of your kids and general day to day needs. Now is the time to:

• Increase your contributions to medium and long-term savings and take out life insurance.
• Diversify your savings and start buying shares, unit trusts and other products.
• Reassess your retirement funds and adjust them if necessary.
• Make sure you have a will.

You should also review your investment plans regularly and get a professional financial planner to assess what you need for the next stage of your life. An expert, like Consequence Private Wealth, partners with you and your family to protect and build your wealth.

They believe that the consequences of decisions made today will bear fruit over the years, based on the sound principles applied at their inception.

Wise words, and a good way to prepare your kids for when they have their own finances by setting a good example.

Independent family and the road to retirement (age 50-65)

Ironically, at this stage in your life, things get cheaper. The kids have left home, your earning power peaks, and you’re heading towards retirement. Here’s what you need to consider:

• Make sure that you’ve paid off all of your debt before retirement. After retirement, you’ll have to live on pensions and investments, and lingering debt can be potentially financially damaging.
• Consolidate your investments so that they are low-risk and offer steady inflation-linked returns.
• Adjust your long-term retirement strategy and increase your contributions to a retirement fund.
• Plan your estate so that your family – rather than the taxman – benefits when you die.

Getting our financial affairs in order is something we know should be done sooner rather than later. Yet given the jargon and noise out there, plus the difficulty of knowing in whom to confide, it’s not surprising we see personal finance as something to be put off for another day.

Developing a relationship with experts like Consequence Private Wealth helps you to plan ahead and manage your immediate finances, investments and savings.

Visit their website to find out how you can start managing your wealth today.

[source:businesstech]