Your Top Financial Priority in 20, 30, 40, 50 and Beyond, According to Experts

From first pay check to last pensionEach stage of life brings new financial priorities – and pitfalls.

whether you are just starting out Or is coming to an endThe key is to make your own Wealth Work harder, not just longer.

It may also help to know how priorities may change as you age and prepare for them ahead of time.

Here’s how to take control of your finances at every age.

Your 20s: Lay the foundation

The sooner you start forming good financial habits, the better off you will be. Financial planner Zoe Brett of EQ Investors says: “Your 20s are about building a good foundation. Build something savings A good rule of thumb is three to six months’ worth of expenses – for emergencies. Avoid getting into debt as it can be a serious cycle and incredibly difficult to get out of, so it’s best not to get into it in the first place.”

It’s tempting to spend your first real income on fun and freedom, but even small steps now will compound over time. Set up a direct debit to a savings account every payday so you can save without thinking.

Brett recommends investment Even early. She says: “Start with a simple investment strategy such as some index funds or perhaps investing in a tax-efficient ISA in a managed fund. Even small sums will add up.”

And if your employer offers a pension, take it with both hands. “Most pension schemes will match your contributions to a certain level so take advantage of this free money,” says Brett.

Your 30s: Protect and Prioritize

Your 30s can feel like a financial shock, with a mix of rising income and increasing responsibilities. Everything from mortgages and child care to career changes costs more.

Brett says this decade is all about “building on those great foundations of your 20s.” She adds: “It can be difficult to juggle everything, so create a Budget Whatever works for you, stick with it. Try to increase your investments and pension contributions. A good rule of thumb in your 30s is to contribute 15 percent of your income per year, including employer contributions.”

This is also the time to protect what you have built. “Make sure you have adequate protection such as life insurance, critical illness cover and income protection,” says Brett. “This will help keep you and your family safe if the worst happens.”

As savings and investments increase, she suggests seeking professional guidance. “It makes sense to hire a financial advisor at this stage and ensure that your portfolio is appropriately diversified,” she says.

Your 40s: Peak Earning Power – Use It Wisely!

By age 40, you’ll likely be earning more than ever, but will also be feeling pressure from all sides. You may be supporting children while helping aging parents, while trying to secure your future.

“Your 40s typically bring you your maximum earning potential,” says Brett. “Try not to succumb to lifestyle inflation – use the extra income to solidify your financially unencumbered future rather than keeping up with the Joneses.”

If you have debts, focus on paying them off, and consider paying off your mortgage more if possible. This is also the decade to turbocharge your pensions and investments, when compound returns can still make a meaningful difference.

Brett says: “If you haven’t already done so, hire a lawyer to prepare a will and lasting power of attorney, especially if you have a young family.”

If you do this, make sure you’re teaching your kids to handle their own finances, too.

Your 50s: The Final Push

With retirement looming, your 50s are all about getting in shape and turning decades of savings into a plan.

“Your 50s are where you start thinking about how you want to spend your retirement,” says Brett. “Work with your financial planner to understand your target income in retirement and make sure you have enough to sustain it.”

This is the decade of focus.

She says, “Continue to fund your investments and pensions. Discuss your risk attitude with your advisor – depending on your planned retirement income strategy, this may be a good time to start de-risking your assets.” Then, even if you’re not likely to retire until you’re closer to 70, you may still have a long way to go with investing.

But don’t forget the basics. “Get the State Pension Forecast to check your state pension eligibility,” advises Brett. Also review your protection policies as you may no longer need the same cover once the mortgage is over and the children are financially independent.

60 and beyond: Enjoy the rewards

You’ve made it to retirement, and now comes the emotional shift from saving to spending.

“The mental transition from working to retirement can be difficult,” says Brett. “Suddenly going from saving money to spending it can feel uncomfortable. This is where you need to trust your financial plan. You’ve worked hard and now it’s time to enjoy it.”

This means strategically reducing income, keeping an eye on inflation and making sure your money lasts – but also giving yourself permission to live a little.

golden rule

No matter your age, financial confidence comes from knowledge, not luck. Brett says: “Educate yourself with the right resources. There are too many irresponsible dramatic news outlets and influencers selling you on doom and gloom.

“Recessions aren’t going to end the world – in fact they create investment opportunities. If something seems too good to be true, it probably is.”

In short, block out the noise, focus on what you can control, and make decisions that best serve your long-term goals.

When investing, your capital is at risk and you may get back less than you invested. Past performance does not guarantee future results.