A Financial Checklist for Your 30s, 40s and 50s

Paying attention to your finances is always important. But what you need to do can vary based on your life stage, goals and other factors. This financial checklist by age can help you make sure you’re on track whether you’re building your career, hitting your peak earning years or preparing for retirement.

Throughout your life, you’ll make important decisions about your finances, insurance needs and more. A professional can help you understand your options. Reach out to Farm Bureau to connect with someone who can help. 

Financial Planning in Your 30s

Good habits in your 30s can position you to meet your financial goals as you get older. If you haven’t taken these steps in your 20s, now is the time to:

• Build your emergency fund. It’s common practice to have enough money in an emergency fund to cover three to six months of your living expenses.
• Check your insurance coverage. Look for gaps in your homeowners, auto or renters insurance, or protection you might need now, like life, disability or umbrella insurance.
• Pay off high-interest debt. Aim to eliminate student loans and credit card debt.
• Start investing. When you’re in your 30s, your investments have decades to grow. Be sure to check for an employer match for your retirement savings. It’s a good idea to automate your contributions so you build a strong savings habit.

Supercharge Savings in Your 40s

Many people move into their peak earning years in their 40s. That makes this decade a good time to:

• Max out your contributions. As your income increases, invest a bigger percentage of it. 
• Maintain your standard of living. At this time, you may feel the urge to splurge on a bigger house, new car or expensive vacations. Make sure at least part of your additional income is helping you build wealth.
• Review your estate plans. As your family and life change, you may need to update your will, beneficiaries and other parts of your estate plan.
• Take another look at your insurance coverage. What worked for you in your 30s might need to be modified in your 40s.

Adjust for Retirement in Your 50s

Once you’re in your 50s, it’s a good time to evaluate your retirement plan and make adjustments to help keep you on track for your goals. You may want to:

• Use catch-up contributions. In your 50s, you can contribute additional amounts to some retirement accounts, so you have more money available once you’re no longer working. 
• Diversify your portfolio. As you get closer to retirement, you may want to adjust your portfolio to reduce exposure to any significant stock market downturns.
• Think about what retirement will look like. Do you want to travel a lot, or would you rather stay close to home and family? Are you in good health? Do you plan to downsize? Answering these questions can help you decide when you can retire and how you’ll afford the retirement you want.

Build Your Financial Checklist by Age

No matter how old you are, it can help to have a second set of eyes looking over your financial plan. Reach out to Farm Bureau today to help you meet your goals as you age.