We are never too young and never too old to start the financial planning process, but as soon as we start earlier, the more we will benefit from the positive effects of planning. Life is full of changes, to successfully manage it, we need a well-prepared financial plan. You can search for financial planning in Brisbane if you need more details. Our plans and business goals change with us, so it is good to evaluate and renew the financial plan whenever the situation demands. How do our financial needs look at every stage of our lives?
Stage 13 – 17 years
It is the stage when we prepare for adult life, and we think about making a plan for the future, we think about what studies we want to pursue and what career would be the best fit. During this time we will change our plans several times, so opportunities and temptations begin to take place in our lives.
We start to have financial needs and think about how we can meet these needs on our own. It is the stage where we should lay the foundations for financial education, get in touch with the first notions about the financial system, where the money comes from and what it means to save. Now we are beginning to make the difference between needs and desires, and we must learn and accept that we cannot satisfy all our hopes.
At this age, it is best to start keeping a record of the money we spend and to develop our financial monitoring system. If we have the foundation of fair financial education from an early age, we will become financially responsible adults, and we will know how to make sound and well-documented financial decisions.
Stage: 18-25 years
Optimism characterizes this period; we have all our lives before, we do not own many personal properties but have big plans. It is the time when we think of saving for the wedding or the purchase of a real estate, and that is why we also call the period of accumulation in which we lay the foundation of our financial stability.
It is the stage where we start our professional lives, and we think about how we can achieve financial independence. We will make choices about education and careers, and these choices will have an impact on our entire economic life.
We already think for the first time that we need to meet our financing needs through credit, and implicitly begin to think about saving money for the future. With financial independence, we begin to appreciate the value of money earned by our strengths, and we pay more attention to the expenses we make and we make a plan in this regard. The most important thing in this period is to keep track of income and expenditure so we can see what the source and destination of our money are for controlling them. It is the moment when we develop our financial identity and create an economic system to guide us. Planning our business life as early as possible, we will have long-term benefits. Find out more by clicking here.
Stage: 25-40 years
It is the time when the crucial decisions in our lives take place: setting up a family, buying a home, consolidating a career. Understanding the financial implications of these decisions is very important for our economic future. The choices we make now will decide our fate.
It is the stage where, if you want to have children, you need to make plans for their growth and education. The emergence of new members will influence our financial situation, and our ideas will take new forms, having to cover increased needs. The appearance of a child makes us think about life insurance for the one who generates family income to protect the future of other family members in case of unfortunate events.
At this stage, most people begin to think about life insurance, child-raising funds, and parental health insurance. That’s how we protect our future. We need a strategy that covers all these needs and gives us the overall picture of what we want to achieve from now on.