Contributed by: Sandra Adams, CFP®
As a financial planner, one of the most powerful principles I share with my clients is simple: Pay yourself first. Regardless of your age or income, prioritizing your future self is the cornerstone of financial well-being.
In Your 20s and 30s:
Start small, but start now. Automate contributions to a retirement account like a 401(k) or IRA—even if it is just 5%. Build an emergency fund (at a minimum, 3 to 6 months’ worth of your spending needs). These early habits create momentum, allowing compound interest to work its magic over time.
In Your 40s and 50s:
This is often your peak earning period. Increase your savings rate, especially if you are catching up. Maximize retirement contributions and consider additional investment accounts. Paying yourself first now means more flexibility later—whether that is retiring early or helping your kids with college.
In Your 60s and Beyond:
Continue to prioritize your financial future. Shift focus from accumulation to preservation and income planning. Paying yourself first may now mean budgeting wisely from your retirement income and ensuring that your healthcare, long-term care, and legacy plans are in place.
No matter your stage, the message is the same: You are your most important bill. Treat your future like a non-negotiable expense. Your future self will thank you.
If you or someone you know needs help with how to get started setting your pay yourself first goals, please reach out. We are always happy to help! Sandy.Adams@CenterFInPlan.com.
Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected.
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