Have you ever wished someone just handed you a financial roadmap for your life? A guide that tells you exactly what to do, and more importantly, what not to do, as you navigate your twenties, thirties, and forties? You’re not alone in this! Money stuff can feel huge and overwhelming, but I promise you, getting your financial ducks in a row is completely doable.
I recently had the chance to chat about this on Pix 11 NY, breaking down the financial dos and don’ts for each decade. Because no matter your age, there are common financial mistakes that can cost you dearly, and smart moves that can help you build wealth for years to come. Let’s talk about it!
Your Twenties: The Foundation Years – Prioritize Investing (Seriously!)
When you’re in your twenties, it’s all about laying that solid foundation. But here’s the biggest mistake I see: not prioritizing investing.
I get it! You’re in your twenties, you get your first “real” job, you’ve got your first paycheck, and you’re thinking, “Outfits! Going out! Fun stuff!” Especially if you’re in a city like New York, there’s always something exciting to do. But this is the decade where you need to start thinking about the “B word,” …Budget. Yes, I said it! Think of yourself as the CFO of your own life. You need to create an allocation in your budget specifically for savings and investing.
Part two is you have all these benefits like 401ks and employee stock purchase plans. Often, individuals don’t really know what they are, so they don’t take advantage of them. If your company offers a 401K match you could be leaving free money on the table. Don’t let those benefits sit untouched; they are often the best way to start investing in the stock market as a beginner!
It’s about taking those baby steps. Take a small percentage of your paycheck, getting into the habit of saving and investing early is like planting a tiny seed that will grow into a mighty oak.
Your Thirties: Navigating Lifestyle Creep – Keep Your Needs in Check
This is where life often gets real. You start thinking about vacations, a nicer car, a house, maybe even kids. And let me tell you, kids are expensive!
You might find your “needs” portion of your budget starting to grow. But here’s a crucial rule I teach: your needs should ideally not be more than 50% of your take-home pay. If your housing, transportation, minimum debt payments, insurance, and medical expenses rise above that 50% mark, then it starts eating into your “wants” and, even worse, your “savings” and “investing” categories.
This is the time to really ask yourself tough questions: Is this car too much for me? Is this house too much? Do I need a roommate? I don’t know about you, but when I was starting my career, I had like five roommates in one apartment! It’s about being realistic and making choices that serve your financial future, not just your immediate desires.
Your Forties: The Mid-Career Balancing Act – Plan for Retirement (and Talk to Your Kids!)
When you hit your forties, retirement starts feeling a little less theoretical. It’s coming up in maybe twenty-five years, and it’s time to really hunker down and giddy up on getting your finances in order if they aren’t already. This means taking a realistic look at where you are financially: what you have, what debts you carry, and what your future spending will look like. Having a realistic retirement budget for the future helps you approximate how much you’ll need to save up.
This decade often comes with another big financial consideration: your kids. As a parent, you want to take care of your children, and sometimes that happens at the expense of your own finances. You might be covering sports equipment, an iPhone, and then college for them, all while trying to save for your own retirement. It’s a lot to juggle, and it can feel incredibly overwhelming.
But here’s a secret: having open, honest conversations with your kids about what “needs” are, what “wants” are, and what you can actually afford helps them in the long run. And remember, you don’t have to do it all on your own.
Don’t Go It Alone: The Power of Education and Support
The truth is, money can feel overwhelming, and when it feels overwhelming, it’s easy to just do none of it. That’s where we can really get into trouble. You might think, “Oh, I can just figure this all out on my own!” But you shouldn’t be afraid to ask for help.
There are professionals who can help you. A financial advisor can help with the investment side of things, looking at your portfolio and where your money is invested. A financial counselor (like yours truly!) can help you with the day-to-day money management, budgeting, debt payoff, and getting those foundational financial ducks in a row. Having that team together can be a powerful combination.
But beyond professional help, education is key. Understanding investing topics, knowing what stocks are, what ETFs are, all those questions people are afraid to ask, means that when you do talk to an advisor, you know what they’re talking about. That’s exactly what we do at Her Financial IQ. We provide accessible, fun financial education to help you master the Language of Money.
The Bottom Line
No matter your age, building wealth is a journey, not a sprint. It’s about making conscious choices, understanding your money, and not being afraid to ask for help. You don’t need to be a “finance person” to do this. You just need a plan and the willingness to take those baby steps.
I’ve been where you are, and I promise you: once you understand how it works, you stop being afraid of it. This isn’t about being perfect. It is about being consistent. And consistent? That is absolutely something you can do.
Jessica Perrone AFC®
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