Financial Goals for Each Decade

Financial Goals for Each Decade

While everyone’s personal finance journey is different, there are key steps we all need to take at certain stages in life to ensure we have and we can enjoy what we have. Having a well set out plan for each of your goals can help keep you in check and ensure you reach them on time.

Having goals at every stage in life gives you a sense of direction and can help you manage your finances effectively. Those goals largely depend on your finances and lifestyle. You can start working on these milestones and refine them to your personal circumstance to ensure you’re on the path to financial freedom. Bear in mind that everyone is in a different place, and will have different objectives as you read the suggested personal finance goals. 


For your 20’s

At this stage, your finances might not be in order, but you should learn to master money and earning so the lack of it/ hunt for it doesn’t control you in future. It’s a time for personal exploration so start taking steps that lay a strong foundation for building wealth as you get older.

  • Learn to live below your means
  • Work towards financial independence
  • Start paying off debt
  • Build an emergency fund
  • Start investing for the long-term
  • Read up on personal finance and financial planning
  • Set long-term financial goals


For your 30’s

Goals at this stage should be a continuation of what you’ve already started. New responsibilities also tend to pop-up in this life phase – You’re probably married and have little children. Your goals should also accommodate these new changes.

  • Become an expert in your field
  • Build passive income sources
  • Start saving for retirement
  • Start saving for kids college funds
  • Have six months of income saved in your emergency fund
  • Fully pay off debt
  • Diversify your investment portfolio
  • Work on a long term financial plan
  • Get life insurance


For your 40’s

At this stage, you should have built momentum for a bright financial future. Your financial health becomes priority and every decision should mirror this. In your 40’s, focus on capitalizing on your peak earning years and avoid poor financial decisions.

  • Increase retirement savings to at least 15% 
  • Up your kids college savings
  • Review your financial plan
  • Re evaluate your budget
  • Aim to have 3x your salary invested
  • Stay out of debt
  • Create a will


For your 50’s

Usually at this stage, you should start preparing for your retirement lifestyle. Create a flexible plan to help you downsize your life in preparation for retirement, and do what you can to maximize contributions to your retirement savings.

  • Up your retirement contributions
  • Look into long term care insurance
  • Re-evaluate your budget
  • Look into part-time employment options
  • Revisit your will


If you don’t know where you are going, you will probably end up somewhere else.

–Lawrence J. Peter

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