Financial goals for your 20s, 30s, 40s, 50s and 60s

“What should I be working on with my money, right now?” It’s the second most-asked question I get as a financial educator, how to make your first million being the first. Here are money goals for each decade of your (adult) life that are almost always helpful in answering that question.

Money goals in your 20s …

There are four financial goals to strive for in this decade and they help establish healthy money habits for the future.

Graduating and getting a decent job: The first job (or two) won’t be your dream job. But if it pays reasonably well and has opportunities for you to gain good experience, stick with it for a bit. Learn to network, keep your skills sharp and your LinkedIn profile up to date.

Building credit: Your score increases when you make regular on-time payments toward your debts and when you avoid maxing out the limits on credit cards and lines of credit. I recommend monitoring your credit score via your bank or an app like Credit Karma.

Learning to save: Dream up — and save up — for your short-term goals such as travel and moving out. Separate this money from a rainy-day fund (used for emergencies). On pay day, transfer money into each savings account and track your progress.

Starting to invest: If your employer has a retirement savings plan, sign up. If not, TFSA and RRSP accounts, through your bank, a robo-adviser or a certified financial planner, are great places to start your investing journey. Automate contributions on payday.

Money goals in your 30s …

Some of the biggest milestones happen for thirty-somethings — career changes, marriage, family, home-buying, etc. There are three financial goals to strive for in this decade.

Paying down debt, aggressively: Too much debt can be a showstopper for a relationship, buying a home, having children and even changing careers. Make debt-freedom a top goal. You’ll have less stress and build financial security quickly.

Mastering the budgeting process: You toyed with budgeting in your twenties, but there wasn’t nearly enough at stake to stick to it. Now, in your thirties, everything is on the line. Figure out your method (zero-based budgeting, annual spending planning, envelopes, the cash system — whatever) and master it. Budgeting is how you will reach big money goals like building a down payment, paying for a wedding, taking that epic trip or starting your family.

Marrying well (not necessarily wealthy): If you and your honey are financially aligned, you’re more likely to stay together. Trust me, I literally wrote a book about this called “The Modern Couple’s Money Guide.” Run for the hills if you two can’t get on the same page about money. It’s important to note that thirty-somethings can still build financial security without owning a home. Though the emotional pressure to buy is red hot, take a good hard look at the numbers before making a purchase.

Money goals in your 40s …

This is an expensive time of life, but also when many people start to earn more in their careers. Strive toward these money goals.

Upping your career game: You’re approaching 20 years of work experience, and are now an expert at what you do. Throw your name in the hat for higher-paying opportunities, ask for that raise or promotion you’ve been working toward. Consider jumping ship to a new employer who’s eager for your talent and willing to pay you more.

Investing more: Phew! You still have time to prepare for retirement, but if you’re behind (according to your money coach or financial planner, which you for sure need to have hired by this point in your life), it’s time to catch up. Between your work retirement savings programs, RRSPs and TFSAs, strive toward investing 10 to 20 per cent of your income toward retirement.

Avoiding lifestyle inflation: Everyone around is upping their lifestyle — bigger homes, nicer cars, better kids camps and and and … the data shows most are paying for their bigger lifestyle with debt. Stick to what your household can actually afford.

Money goals in your 50s …

Your savings and investing systems are all working now, with a few tweaks. You’ve stayed out of bad debt, for the most part. You’re earning the most money you’ve ever earned. Your financial planner is reviewing your money strategy with you annually and it’s on track. You can take a deep breath and strive for these two goals.

Reducing your mortgage: Ideally you’re mortgage-free on your primary residence before your retirement. If there’s flexibility in your budget to take advantage of prepayment opportunities, it might be time to utilize these, even if it’s a modest acceleration of payments like moving your weekly payment up by $50.

Enjoying your money: Why not? Your hard work is paying off and you can plan for travel, that home renovation or even a career change. Work this spending into your budget.

Money goals in your 60s …

For most, this decade is about retirement readiness. For some, it’s a full reinvention of work, life and more. My advice is to just be ready to retire, even if you don’t do it in a traditional way or at a traditional time (age 65 for most).

Striving for retirement readiness: Understand your sources of income in retirement like CPP, OAS, pension funds, a RIF, etc. Ensure you and your financial adviser have prepared a real-life budget around this income. Spend time visualizing how you want to spend your time and money. Start exploring the hobbies you’ve been putting off.

Think about these money moves as guiding lights (not set-in-stone rules) to help you and your loved ones make progress on your money each decade.

This article was originally published in The Star. Lesley-Anne Scorgie is a Toronto-based personal finance columnist and a freelance contributing columnist for the Star.