Are you financially fit?

Posted: Updated:
By Catherine Holland By Catherine Holland

PHOENIX -- Saving money can be difficult, especially when times are hard. Having a plan can help. You might not always make your goals, but simply having them can give you a good picture of your overall financial situation.

Once good way to set financial goal is to break them down by age.

By the time you're 30…

  • You should have mechanisms in place for saving (ex: established emergency savings and direct deposit into savings)
  • Be enrolled in a retirement plan
  • Have an established a credit history
  • Be in process of paying down student loans (if applicable)
  • If you have credit card debt, be sure you don't owe more than 25 percent of available balance

By the time you're 40…

  • Have an emergency fund with at least 90 days of living expenses
  • Have at least double your annual salary in retirement savings
  • Have a credit score greater than 750
  • Undergraduate student loans should be paid off
  • If you have credit card debt, be sure you don't owe more than 15 percent of available balance
  • Have an Will and Power of Attorney

By the time you're 50…

  • Have at least five times your annual income in retirement savings
  • Your total unsecured debt should be less than 10 percent of available credit
  • You should no longer have a car payment
  • Have short and long-term disability insurance
  • You shouldn't owe more than 50 percent of your mortgage (be on track to pay off mortgage by age 65)

Bottom line: Have goals. Work toward them. Keep getting better every year.
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