Your financial life stage

People’s needs and circumstances change at different stages of life. In the early stages of their work life, young adults between ages 18 and 25, tend to focus more on spending and enjoying the freedom of earning their own money. Priorities at this time are normally wearing the latest brands, travelling, partying or owning a vehicle. As this group enters their late 20s or mid-30s and the reality of life confronts them, they are forced to look at things differently.

As a life and financial coach, I have found that clients at this stage begin to panic about their financial situation, especially when faced with new challenges. In circumstances where salaries cannot support the added responsibility of a young family; the high cost of tertiary education; the down payment to purchase a home or their previous lifestyle habits, they recognize the importance of having a financial plan in place. However, financial goal setting is not an activity that is practiced by most young people as a result when faced with unexpected bills, a financial crisis or an opportunity to acquire an asset, they lack the money needed.

At the mid-life stage the focus shifts to job security, children’s higher education, wealth accumulation and estate planning. People are much more experienced having learnt some critical life lessons and are in a better position to handle financial issues. At pre-retirement stage the concentration is on consolidation, reducing debts, securing investments, minimizing risks and other retirement goals. Beyond retirement people are more concerned about security of funds, managing expenses, living a comfortable and healthy lifestyle and having enough savings in the event of emergencies.

Today’s economic climate requires that you examine your situation, understand your life stage, review your plans and take the necessary steps to achieve your goals. In designing your life plan several issues should be considered, such as; inflation, job security, food prices, medical expenses, education costs, housing market and other contributing factors.

If you are not where you would like to be financially at your stage in life, here are some tips you can follow:

• Be clear about what you want to achieve and the time frame in which you would like to do so.

• Do not allow age or your present financial situation to deter you from starting your plan.

• Write down what you want to achieve in the short, medium and long term period. List the activities that you need to do and assign your savings or investment fund to the specific goal.

• Note any potential obstacles and what strategies you can implement to overcome them.

• Familiarize yourself with the economy and the trends in the marketplace.

• Establish an emergency/ contingency fund to take care of unexpected situations.

• Create a monthly budget with headings ‘Fixed Expenses’ and ‘Variable Expenses’ and include savings under fixed. Make adjustments under variable to stay within budget.

• Make some critical decisions regarding your future plans and be realistic when setting your goals.

• Remove any fears that may be blocking your progress and have the confidence that you can succeed.

• Make that commitment to follow through with your plans.

A key aspect of planning your future is to have your plan written, constantly review it and be willing to adjust if necessary.

I wish you all success at whatever financial stage you are at.

Jennifer Gibbons-Joseph is a Certified Life Empowerment and Financial Coach of Conec Professional Life Coaching Services Ltd. You’re welcome to contact her by emailing Jennifer@ coneccoaching.com or phone 766 2148/271-5020 and she’ll be happy to help you plan for a successful future.