The Tennessee Credit Union
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Personal Finance by Age Group - Decade by DecadePersonal Finance by Age Group

There are two “golden rules” in personal finance that apply, regardless of how old you are: (1) live within your means, and (2) look forward to the future and save for it.

These are two very simple concepts but very powerful. If actually applied to your everyday life, they can mean the difference between being constantly stressed about your finances, and feeling secure and in control. Below are some more specific suggestions by decade.


Tip #1: Establish a positive credit history. A good way to establish good credit is to get a credit card, use it often, and pay off the ENTIRE balance ON-TIME, every month. Paying before the due date and avoiding interest charges is critical to your financial health.

Tip #2: Don’t be in a rush to move out of mom and dad’s house. If you have landed a job, take the time to get a strong financial foundation and establishing savings, before you move out on your own. Stay focused on paying down any student loan debt you may have.


Tip #1: The 30’s are when you may become established in a career and ready to purchase a home or finance a wedding. Before taking the next step, review your credit and current debt load.

Tip #2: If you are ready to purchase a home, determine how much you can afford to spend. This might be very different from the amount you are approved for by a lender. This is a big commitment. Make sure you take your future lifestyle into consideration.


Tip #1: Be careful with the upgrades. You may be advancing in your career and ready to buy a bigger house, or nicer car, because things are going well. This is a slippery slope, so be careful!

Tip #2: Review your emergency savings. You may be socking away some money, but is it enough? There are plenty of “rules of thumb” for how much you should have in savings. Three months of expenses? Six months? This is a personal decision with no right or wrong answer.


Tip #1: As retirement gets closer, review your debt load and retirement savings. Most of us do not want to enter our retirement years with debt. This is the decade to avoid getting further into debt, paying off existing debt, and increasing retirement savings.

Tip #2: Don’t overextend yourself helping others. You may have kids in college and aging parents, but you should never lend money that you need yourself.


Tip #1: This is the decade when most people decide to retire. Before retiring, be sure to find out exactly what your income will be and review your budget. The Social Security Administration has a retirement benefits estimator available at that can be used to estimate income. You may also want to consult with a financial advisor to help you manage your retirement distribution needs.

Tip #2: For most of us, housing is the biggest expense in our budget. If you are a homeowner, even if your home is paid in full, there are property taxes, upkeep costs, and utilities. Consider if the home you are living in is the right fit for you as you age.

Reprinted with permission. Authored by Katie Bossler, GreenPath personal finance counselor. Click here to learn more about GreenPath financial wellness services, provided without charge to TTCU members.