Life can be a whirlwind, at times it is stressful, sometimes exhilarating but it is rarely simple. Although we may be overwhelmed by whatever is taking place in our life, when it comes to personal financial planning, it should not come as a surprise.

One thing we must know is that as we go through different stages of life, our financial goals will likely change. Most of the time, what’s the right thing to do when you start working may change as you start a family.

In my newsletter to you, I will share the following:

  1. The life stages of human beings
  2. Milestones of various life stages
  3. Actions to be taken for each life stages

The life stages of human being

Milestones of various life stages

Below 30

In the early years of adulthood, your financial life can run away with you. You may have many financial commitments such as owning a car, venturing out from living with parents, and of course the freedom of being able to do whatever you want, whenever you want. In this phase, you may have the tendency to just live day by day, according to how much income there is.

These early years of independent living are crucial in your future planning. They form habits that will stay with you, and also dictate whether you spend a lifetime of saving, or simply trying to repay debts.

30 to 40

In this stage of your life, you have long term commitments in the form of your new home, marriage and children. These commitments are going to form a big chunk of your personal finances.

Hopefully at this stage, you have cultivated the right habits about budgeting and cash flow for yourself. We all know that buying big ticket items such as a house is exciting but at the same time stressful. The good news is that your partner is sharing with you for your new house. However, if the right habits are not cultivated, both of you will be in a dire situation financially.

40 to 50

At this stage of your life, it will probably be exciting. For some people, mortgage loan could possibly be fully paid and children may have already started their career as your financial liabilities decrease. You are experienced at work, probably a senior executive at the company now with higher income, but at the same time young and dynamic.

As you are likely to be at the stage where you are able to take control of things around, you have to be aware that the decisions that you make now can make a vast difference in the future, this is due to the compounding effect of slight variances over a long period of time.

50 to 60

At this stage of your life, you are about to experience something you’ve always wanted. No more mortgage, children have gained independent in their lives, you are earning more than you have ever earned before! However, you are about to tackle the next big question of your life, ‘Will I have enough money to stop work?’ or ‘How much is enough?’ Even when you have built up a significant level of wealth, longevity risk (i.e. living longer than your savings for retirement) can be a difficult question to answer.

Early retirement is always nice as it means a voluntary and happy decision to leave the world of paid work and commence a life of leisure as soon as financially possible. However, it is only possible when careful planning has been done up. Nonetheless, this is the period where it is your last real chance to make an impact on your planned retirement.


At this stage of your life, if you are not working, chances are your accumulated wealth is depleting. For most people, retirement phase may last many years or even decades. All of the hard earned savings you have made are now for your enjoyment. Security in retirement is absolutely possible, but in all cases it does need planning. Even the largest of portfolios can disappear in no time if no consideration is given.

Actions to be taken at each life stages

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