Are you financially fit?Posted: Updated:
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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