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Good savings habits through your life stages
Super Contributor
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While we all work hard and deserve to enjoy our money, it is still important to reassess our saving and investment plans as we grow older. Those who get into good savings habits from an early age won’t have to worry about money in their later years.

Good savings habits for 20-somethings - Formulate a budget, start your long-term planning, set some life goals, build capital towards achieving these and speak to a financial planner about disability or dread disease insurance. Join a pension fund when you start your first full-time job. Bank loans will be required for buying a car or investing in a home, which will impact your future financial status.

For 30-somethings - Invest in fixed deposits, high- or low-risk unit trusts or equities, depending on your goals and risk appetite. Investigate pensions and provident funds, especially if these options are not part of your employment package. Ensure you have enough medical; life and short-term insurance as you buy bigger homes, marry and start a family. Save for your children’s education.

For 40-somethings - Start enjoying the luxury of re-investing income from your savings. Plan to pay off your home and step up your retirement planning. Retirement needs careful planning. If you wait until your fifties to save, it’s usually too late to build up enough capital to ensure you have a happy, stress-free retirement.

For 50-somethings - Review your financial plans for retirement and top up if required. Focus on paying off all major outstanding debt. Ensure you are adequately covered for death, critical illness or disability and think about estate planning. Invest your retirement savings so that they continue to grow in line with inflation. Revisit your will, make some lifestyle changes, move to a smaller home, or retire to a different town.

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