Does my age shape my spending?

by Michelle Vandepas | More from this Blogger

12 Jan 2007 03:22 PM

How do your money priorities change as you get older?

As a teenager we want to buy a car, get out on our own, maybe pay for college.

Later in life we want to buy a home, and pay off college debts.

How should we change our budgets as our needs change?

Obviously as a young person, you'll spend more on home ownership, raising a family, and 'toys'.

As you get older, you will be more concerned with college expenses for your children, your aged parents, and your own retirement.

We still want to buy toys, (bikes, skis, snowshoes and the like), but most of us are just too darn busy right now to play that much. (Ok I'm just whining a bit)

If you can turn it all upside a bit, and start saving for retirement early in your career, you'll be so ahead of the game you might even be able to retire way early!

Some experts recommend reevaluating your spending habits every few years, but I think you should be looking at your spending every month. Hubby and I will probably continue to watch our money very closely over the next few years anyway as we go debt free and save more for retirement. As we pay off debt, we'll have extra money, (which will go to pay off debt at first) and then as we go debt free we'll be wondering where to put our extra cash!

What a wonderful problem to have.

Think about looking at your finances on a regular basis, and changing your budget as your needs change. Don't go into automatic pilot with your finances just because you've managed to write it down and get it under control. It is time to make that cash work for you. Each and every month, no matter how old, or young, you are.

Do I really need to manage my money?

Do I have to give up my fun?

Learn more about Michelle Vandepas

In a previous life, Michelle was president of a medical manufacturing company, and then in private practice as a holistic business consultant.

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