Your 20s — Establishing Strong Financial Foundations

• Build your credit. Ensure you pay your bills punctually.
• Open a savings account in addition to your checking account.
• Prioritize saving. Allocate at least 10% of your earnings to your savings with each paycheck.
• Create an emergency fund. Aim for savings that cover 3 to 6 months of living expenses.
• Set up an investment account. Explore options such as Robo-advisors or discount brokerages. Invest after establishing your emergency fund.
• Develop a budget. Analyze your last six months of expenses to create a realistic budget. Look for areas to reduce spending, like opting for public transportation.
• Outline five financial goals with specific timelines for achievement.
• Save for a home down payment if homeownership is a goal.
• Enhance your financial literacy. Participate in a financial education program or read about personal finance.
• Assess your insurance needs. Ensure you have sufficient life and disability coverage to safeguard your family’s financial future.

Your 30s — Accumulating Assets

• Maintain good credit. Check your credit score yearly.
• Stick to your budget. If you don’t have one, create one to track income and expenditures.
• Communicate with your partner about financial situations and goals.
• Develop a joint financial plan. Work together to achieve both individual and shared goals.
• Draft a written financial strategy. Outline plans for achieving your 3, 5, and 10-year goals and review them annually.
• Pay yourself first. Direct at least 10% of your income into savings if you haven't started already.
• Continue building your emergency fund. This should also cover 3 to 6 months of expenses.
• Open an investment account. Research various platforms if you choose to work with a financial advisor.
• Maximize retirement contributions from both work and personal accounts for greater future flexibility.
• Prepare for children’s education if you plan to have kids.

Your 40s — Wealth Creation

• Start reducing debt. Review your budget and trim unnecessary expenses to decrease debt.
• Continue optimizing retirement savings. Keep contributing at work and to personal accounts.
• Invest in non-registered accounts. Consider tax-efficient investments like dividend stocks based on your risk tolerance.
• Reassess your financial plan. Evaluate progress on goals set in your 20s and 30s and adjust as necessary.
• Establish new financial goals for the next 3, 5, and 10 years.
• Adapt to life changes such as divorce or remarriage.
• Consider purchasing a second property.
• Think about seeking advice. If your investments have grown, a financial advisor could help manage your portfolio.

Your 50s — Accelerating Asset Growth and Managing Transitions

• Reevaluate your financial situation due to any significant life changes like divorce or inheritance.
• Consider working with a financial advisor if you haven’t previously. They can help navigate life transitions.
• Create multiple income streams, such as rental income.
• Maximize contributions to your workplace pension and personal accounts.
• Review your retirement plan. Ensure you’re on target and understand available pension options.
• Update your estate plan, especially if your family dynamics have shifted.

Your 60s — Consolidation Phase

• Review your retirement strategy. Ensure you’re prepared to retire if you haven’t already.
• Identify all potential retirement income sources, including public and employer pensions.
• Consider the option of unretirement. Are you thinking about returning to work in a different capacity?
• Reassess your estate plan. This is especially crucial if your family circumstances have changed.
• Discuss your future plans with your children.
• Establish diverse income sources, such as rental income and side jobs.
• Explore the possibility of retiring abroad either full-time or part-time.
• Reflect on unfulfilled aspirations. What would you like to achieve on your bucket list?

Your 70s — Taking Charge of Your Future

• Review your estate plan to ensure it reflects your current family situation, such as the loss of a spouse or new grandchildren.
• Assess your financial readiness for single life post-divorce or the death of a partner.
• Discuss future plans with your children.
• Create multiple income sources, like rental properties or part-time work.
• Consider the option of retiring abroad.
• Reflect on unfulfilled dreams. Are there activities you want to pursue?
• Evaluate if it’s time to downsize.
• Work with a financial advisor.
• Explore tax minimization strategies. This could include gifting assets to reduce estate tax burdens.
• Draft a Living Will to communicate your medical preferences.
• Investigate long-term care options.

Bringing It All Together

Women have unique financial needs compared to men. They often live longer, earn less, and frequently take extended breaks from work for family responsibilities.

Life is dynamic, and a woman’s financial needs shift as she ages. It’s important to recognize that each woman is unique, with different aspirations and circumstances. Not everyone desires children or has a traditional retirement plan.

However, every woman seeks autonomy, security, and the freedom to choose her path. The guidelines provided above serve as a foundation for financial planning across different life stages, allowing women to achieve their desired lifestyles and attain financial independence.

A special acknowledgment to inspiring women who excel in business and finance, particularly those making their mark on Medium.

This article serves as a guide and not professional advice. For personalized financial guidance, consult a financial expert. Jennifer Thompson, a former financial advisor with over twenty years of experience, now writes and coaches others in financial matters.