If you manage funds strategically, you can turn them into a tool that works for you rather than against you. Here are a few tips on how to manage the savings at any age.
1. From 20 to 30
Analyze your financial situation. Make a list of everything you have (starting with the funds in the bank and finishing machine and other values), and all debts. Make sure you know your credit score - even though your credit history is likely still small, it is necessary to watch for
Make a budget based on your current salary. To do this, divide it into three categories: the necessary expenses, savings and entertainment. First of all, the guide means for bare necessities: rent, utilities, food, transportation and payment of debts
Then select a certain amount of funds - no matter what - on savings. The priority should be to create a reserve fund. Its size is determined by the evaluation of life situations (as a reliable and promising work, whether offered her additional medical insurance, whether there is a system of support personnel).
Remaining after necessary expenses and savings money to spend on entertainment. Periodically reviewing its budget, because over time the financial picture is sure to change.
Navigate to the pension fund. In contrast, public pension programs, NPF can more effectively invest your funds - in fact, it is the same investment fund. Initially, the investment is capable seem too difficult, so start small (early start will pay off significantly thanks to the magic of compound interest).
2. From 30 to 40
Think about a career. Now, after working for a while, it's time to slow down and re-evaluate his life. Does your profession aspirations? Do not ask for a salary increase or it is time for a new position? On the other hand, if you want to open your own business, it's time to decide what it will take.
And housing. Calculate what is more profitable - to continue to shoot or buy your own? Also, do not forget about the additional costs associated with owning your own home. In any case, check your credit rating and review the mortgage market.
And also about his personal life. If you have a significant other, it is time to discuss serious issues, such as living together, marriage, children, and finances? Decide how you will manage the money:. Separately, together or else
3. From 40 to 50
Seriously Engage your savings. Imagine what level of life you will be able to afford retirement, if you keep the same amount of delay, and constantly updated list of assets and debts. A solid plan will help deal with debts, increase retirement savings and postpone the funds for other purposes, such as the first payment for a new home, a business or travel, which you have long dreamed of.
Decide whether you need life insurance. Ask yourself, whether depends on someone else from you and your paycheck. You may be uncomfortable with the need to calculate how much you "stand" for their loved ones, but remember that in this way you guarantee care of them if you happen something unexpected. If you have dependents, it is time to think about buying insurance.
Write a will. Turn it all - from medical decisions and ending with those who will move your money and things. For the preparation of basic documents such as wills and power of attorney, you will need a lawyer. Recheck beneficiaries applying for your savings as they are, not listed in the will of the people will have a preferential right to inherit your assets.
4. From 50 to 60
Decide when to send their children "in free floating". Sooner or later, they must be financially independent - think about what it means for a family. If you intend to help them with payment of education, think for their features: whether the means it will be from a savings account, a bank loan, or have to sell a house and buy a cheaper
Besides education, the children should talk openly about financial expectations and independence. Make sure that you understand each other.
Think of old age. Now, as before it is still far, decide who will care for you, and what level of life will provide your pension and dividends from other investments. Ask yourself: "What can I afford?". Discuss your preferences with loved ones, ideally prepare everything in writing.
5. From 60 to 70
Limit the risks. Now, there is very little time to think about the redistribution of capital in favor of the instruments with low risk. This does not mean that we have to forget about investing - most of the people in old age and should maintain a diversified portfolio
Decide how it will look your pension. When it is so close, it will be easier to introduce. Whatever you decide, you need to make sure that pension fits your financial plan.
Details determine how you will pay your bills in retirement. Most likely, in your disposal are several sources of income: their own savings, a pension from the state or the NPF and additional income. In addition, you will likely be several types of savings accounts: rechargeable, time or currency. To learn how to better handle your money, you should ask a specialist.
6. On 70 and older
Think about the future. It is important to ensure that the will reflects your current intentions. Also it is necessary to determine the person candidate who will manage your money now and in the future. Decide who can take on this role.
Think about retirement. Even the most passionate employees one should think about retirement.
Manage assets. This stage is more important than ever, to be attentive and live within our means. Use conducting budget skills learned in his youth. Determine a budget that will allow you to make maximum use of the capabilities of their assets.