How to Set Your Financial Priorities
Determining your financial priorities isn't easy. To help sort it out, here are
some of the biggest financial issues you should think about, depending on your stage in
life...
If You're In Your 20s and 30s
Work on your savings. Develop good financial habits, especially focusing on a disciplined approach to saving regularly. Understand financial risk. Consider taking prudent risks with your investments to outpace inflation. Determine your insurance needs. Be sure you have adequate life and long-term disability insurance. Determine whether your policies cover your needs. Watch your debt. Beware of credit card debt, car loans and car lease payments. Mortgage debt can also hurt - think twice before selling a home to buy a more expensive one. Set up an estate plan shortly after you marry, and update it as soon as you have children. Make sure you have a will, a living will and a durable power of attorney.
If You're In Your 40s
 | Size up your retirement needs. Even though you're still years away from retirement, this is the time to project your annual retirement income and expenses. |
| Be less willing to make high-risk investments. Don't be tempted to speculate your wealth. |
| Weigh your financial needs against those of your children. Don't let your children's college costs interrupt your retirement savings plan. |
If You're In Your 50s
| Take a hard look at your estate plan. Your estate may have grown to the point that you can benefit from advanced estate planning techniques, such as marital and life insurance trusts. |
| Think about your retirement lifestyle. Decide how you want to live after retirement and plan accordingly. Develop a sense of priority...financial priority. It will pay off in the future. |
