Personal finance strategies by age

Personal finance strategies by age

young man with TV

Your financial strategy should change as you age. Here is a general guidline for each stage of your life.

Earn, growth Invest and save in your 20’s

Your twenties should be focused on:

  • earning money.
  • investing in a long-term diversified growth portfolio.

Earn, growth invest, leverage and reduce in your 30’s

Your thirties should be focused on:

  • Earning money.
  • Investing in a long-term diversified growth portfolio.
  • Using some of your earned capital for a property deposit if buying a property is part of your financial goals.
  • Paying down your mortgage.

Earn, income invest and Reduce in your 40’s

Your forties should be focused on:

  • Earning money.
  • Weighting your investment portfolio towards income (dividend) earning shares and ETF’s whilst remaining diversified.
  • Paying down your mortgage.

Earn, income invest and Reduce in your 50’s

Your 50’s should be focused on:

  • Earning money.
  • Investing in an income earning portfolio.
  • Paying off your mortgage.

Debt free income living in your 60’s

Your 60’s should be focused on:

  • Earning money if you still wish to.
  • Living off the income streams from your investments.
  • Living debt free.

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