Money, money, money…it may not mean to you now what it did ten years ago, and it may mean something even more different in the next ten years. This leads researchers to an idea: we have different financial life stages. Depending on where we are in our lives, money has a different meaning and impact on our lifestyle. A recent study by Ameriprise Financial defines your financial life stages, and how your attitudes about money change over time.
Marcy Keckler, VP of financial strategy for Ameriprise Financial, says the company talked to people between the ages of 30 and 70 to figure out what success means to them, and how money plays into that. Keckler says what they found was that, “it’s not about ‘stuff.’ It’s really about having a feeling of security, a feeling of confidence, and knowing that they can provide for their family.”
The study also found there are three distinct stages. Where do you fall?
‘Three Stages of Life’:
1. Asset accumulators: Mainly people between 30-40 years old, where their main focus is on how they can build assets but balance it with paying living expenses. To overcome this stage, write down your financial plan and stick to it.
2. Asset maximizer: Mainly people between 40-50, these people are maxmimszing their savings. The future goal that seems to be the most popular for this stage is of course, saving for retirement. The best way to be during this stage is to have a cash reserve as a buffer.
3. Asset sustainers: Mainly people between 50-70, and they are either on the verge of retirement or have retired. Their main focus is on how their money will last througought retirement.
