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How to plan your lifetime financial goals

Our roles and needs change as we transition through different life stages from a student to a fresh graduate new to the workforce, to a seasoned worker and all the way to a retiree. More importantly, we will have to adjust our financial needs and spending habits as we take up more roles and responsibilities along the way.

As we progressively mature as individuals and we see a growth in our income, this life pattern often comes with an increased financial burden as we may develop even higher expectations of our standard of living.

This article sets out to give you a reference of how you can set your own financial goals in accordance with different life stages and some thoughts on where you would expect to see yourself in the coming years.

In your 20’s – Develop a steady stream of income

This is the first phase of your adulting as you officially step into the workforce industry for the first time. This is also known as the “exploration” stage as you try out different industries and see which one fits you the most. This can be a critical period when how you perform in your first job eventually affects your future job prospects and determine if you are fit for this certain industry. This is also the best period to solely focus on maximizing your savings as you have fewer financial obligations.

In your 30’s to 40’s – Maximize your income and restructure your expenditures

The second phase typically happens when you feel a drastic lifestyle change. The determinant factor would typically be career progression or if you have planned to settle down and start your own family. You will notice a big shift in your needs' prioritisation as most of your money will be spent on fulfilling your higher ambitions like buying a bigger house, changing a new car, planning your dream wedding as well as all the extra miscellaneous costs that come along with a new member to the family!

From your 50’s – Plan for pre-retirement

The third phase happens when you have more or less settled down in your current role and you remain satisfied yet feel rewarded. However, some unexpected costs can also incur during this phase. For instance, unforeseen circumstances like increasing health check-ups and increasing health issues may indirectly increase your health insurance premium prices. You will also reach a certain stage whereby you have to prepare yourself for retirement while still factoring in your daily essential expenses and inflation in the years to come.

Check your credit report

Lastly, maintaining a good credit reputation is important as credit providers will typically assess your credit report before extending a loan to you.

A credit report is a comprehensive record of an individual’s credit payment history compiled from different retail banks and major financial institutions. A credit report will display all credit-related data of the individual, displaying vital information such as the total credit limit disbursed, the types of credit or loan facilities applied, the number of overdue balances that the individual owes and even public information like litigation charges and bankruptcy proceedings.

Credit providers review the report and evaluate the likelihood of the individual repaying before extending a loan to him/her. This helps the lender to mitigate the risks of borrowers defaulting on future payments.

The consequences of having a poor credit report can be dire especially if you are planning to make very important life-changing decisions such as moving into a new house or paying for education fees. Should your loan application be rejected, you will have to seek alternative means for additional funds which might also mean that you will have to consider re-planning your finances, possibly delaying your future goals or even building your wealth.


All in all, we own our own timeline and our journey is unique to each and every one of us. The definition of happiness and success should be self-determined and not through comparison with others. Also, be sure to follow and like our Facebook page @creditbureausingapore for more useful content and tips to maintain a good credit reputation!

Contributed by Credit Bureau Singapore


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