Financial Goals For Each Decade of Your Life

Financial goals are constantly evolving. When you’re in your 20’s, your most important goal might be to work your way up to a livable wage, but when you’re in your 40’s, you might be looking towards retirement! Your financial situation grows and changes as you get older, so your financial goals should change in the same way.

In this guide, we’ve listed several of the most important financial goals you should make during each decade of your life. While everyone’s a bit different and your financial needs may not line up with our goals exactly, this guide provides an excellent place to start planning your own financial goals!


In your 20’s, you should be most focused on getting the ball rolling with your finances. This means starting funds for various things and contributing to them slowly, such as a retirement fund and college funds for your children. You’ll also need to start putting money away for down payments on various commodities, such as homes, cars and other conveniences.

During your 20’s, you’ll also want to pay special attention to purchasing insurance for the rest of your life. While life insurance doesn’t have to come now, things like health insurance, car insurance and home insurance can be invaluable if the unthinkable happens. You should work towards building an emergency fund for the same reasons, too.


In your 30’s, you probably already have a home or have rented an apartment for some period of your life. If you haven’t, though, now is the time to start doing so. If you didn’t handle your finances well in your 20’s, now is also the time to pay off your preexisting debts and improve your credit score. Specific debts to focus on are:

  • Student loans
  • Credit card debts
  • Car payments
  • Personal loans

During your 30’s, you also should start giving some thought to writing your will. None of us like to think about dying, but without a will, your belongings and finances after you pass away can end up in the hands of people you don’t like. It’s best to make things easier and draft a will early, just in case, and update it every few years.


In your 40’s, you’re probably sitting on a comfortable salary, living well within your means, and supporting older children, if you have any. As such, in your 40’s, it’s time to take stock of the investments you’ve made over the last few decades and see if they’re paying off. If your investments aren’t performing up to par, it may be smart to move them to other places instead.

In your 40’s, you should also give some thought to acquiring life insurance. If you or your spouse dies, the other partner will be in charge of handling everything from there on, and having life insurance in place to help smooth the way can be invaluable to grieving loved ones.

At this point in your life, it’s also very important to make sure your financial goals are being met for retirement and onward. If you made good retirement plans in your 20’s, but haven’t exactly been following through with them, now is the time to take note of that and construct future plans to change it!


In your 50’s, according to the IRS, you’re allowed to make additional contributions to your retirement funds in order to catch up to where you should be. You should also start going into a bit more detail in your retirement plans, too. You’ll need to ask yourself questions like:

  • Where and when do you plan to retire?
  • How much money will you need to support yourself (and potentially your spouse) every month?
  • Do you want to live a luxurious retirement, or are you okay with living frugally on a small pension?
  • Will you have other sources of income to count on, such as a spouse’s retirement funds?

In your 50’s, retirement might seem like it’s right around the corner. However, you still have several more years of saving to do before you can afford to relax and leave your working life behind you, so don’t slack now!

In your 50’s, your children might be starting to move out of your home, too, if you have any. Whether or not you decide to help support your children financially is up to you, but if that’s something you desire to do, consider setting aside money for things like down payments, insurance payments and furnishing expenditures.


Your 60’s will be the years you finally start to transition out of work and into retirement. Thus, most people recommend that you have about eight times your annual salary saved for your retirement in order to maintain your previous standard of living. If you are looking to downsize or live more frugally after you retire, now is the time to look into that, too. After all, your children have most likely moved out by now, if you have them.

If you are bored with retirement or don’t feel quite secure enough in what you’ve saved, you may want to think about finding more accessible part-time work to support yourself. This can be something as simple as having a hobby that can pay for itself, or it can be a true pay-earning job if you have the time and energy. Some people find the transition from working every day to having every day off awkward, and finding part-time work can help ease that transition.

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