Take a second to think about what your life was like 10 years ago.
Things probably looked a lot different back then, right?
Maybe you were still in college.
Maybe you weren’t married yet and didn’t have any kids.
You might have even had a completely different career and salary.
Now let’s talk about the future:
What do you want your life to look like 10 years from now?
That’s a lot to think about!
But, a lot can happen in a decade, and what you do right now, no matter what age or stage of life you’re in, will have a huge impact on where you are 10 years from now.
Here’s a decade-by-decade look at what you can do to maximize your savings potential.
How to Build Wealth in Your 20s
You must start planning for retirement, no option.
The reason is that you have the most to gain when it comes to retirement.
There shouldn’t be anything to stop you when it comes to building wealth because you have the one thing other generations don’t: time.
Here’s a scenario:
Let’s say you begin investing $200 a month at age 24.
But your friends, who bought new cars and took dream vacations on credit cards, delay saving for retirement until age 34 while they pay off their debt.
At age 64, you’d have around $1.5 million in retirement savings.
However, your friends would only have $530,200.
That 10-year head start makes you a million dollars richer.
If you’re in your 20s, you’ve got a great opportunity to create a solid foundation for your future. Don’t waste it!
You need to follow these 3 steps:
Live below your means.
Raise your standard of living slowly.
Budget like your future depends on it, because it does..
How to Build Wealth in Your 30s
Here’s the truth: Life never gets less expensive, and saving never gets any easier from here on out.
You’ve got to commit to carving out the money and sticking with your saving and investing habits.
If you’re a 30-something, consider these wise moves:
Watch your housing budget.
Have your emergency fund securely in place.
Save for retirement before you save for your kids’ college.
How to Build Wealth in Your 40s
You’ll likely need enough savings to replace 80% or more of your preretirement earnings to maintain your lifestyle throughout your golden years.
If you’re not where you should be with your retirement savings, you’re not alone.
Many people are in the same boat.
But now it’s time to get serious about your future.
Here are 3 ways to get back on track:
Make sure you’re investing the recommended 15% of your annual.
Don’t borrow money from your retirement account.
If you have a mortgage, start paying it down.
How to Build Wealth in Your 50s
According to a study conducted by Dave Ramsey Solutions, 53% of working Baby Boomers who aren’t currently saving for retirement have no plans to save.
It’s time for Boomers to wake up!
You need to take advantage of the retirement savings opportunities that come with age.
If you don’t, you’ll face a financial crisis in retirement.
So, if you find yourself in your 50s with little or no savings, this is the time to play some serious catch-up.
Some options include: Wait to withdraw your Social Security.
You can claim retirement benefits as early as age 62 or as late as 70.
Delaying your claim will increase your monthly benefits. If you can wait until your full retirement age, you’ll receive more money each month.
The likelihood of needing medical care increases with age, so be sure to keep at least basic medical insurance coverage at all times.
One major health crisis could set you back financially and delay your ability to invest more for retirement.