RULE 28: Understand That Your Financial Needs Change At Different Stages Of Your Life

Bashorun (Dr.) Dele Momdu, accomplished Publisher & Politician
Some cultures
allow for a different focus, a different strategy, during different stages of your
life. For instance, up to age 20 might be for being young and foolish and
getting an education. Age 20 to 35 could be for getting married and raising a
family.

 Age 35 to 55 might be for running your
business and making your fortune. Life after that is for spiritual
contemplation and retirement from the commercial world.


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Essentially,
your financial needs change over time, reflecting what is going on in your life
at any stage, and the choices you make in your lifestyle at that time. You
might need more money when raising a family, but maybe this is a time when you
can usually cope better with a little adversity.
“This rule is about checking where you are and what
you need; and about knowing that the conditions which influence your needs do
and will change. You have to make allowances for differing circumstances”. 
By the time your
kids are at university you definitely need loads more cash or the poor darlings
won’t have enough to squander in the student union bar in the evenings, every
evening. And once you hit retirement you can downsize again – unless you intend
spending it all on expensive world cruises.
This rule is
about checking where you are and what you need; and about knowing that the
conditions which influence your needs do and will change. You have to make
allowances for differing circumstances.
A bit of forward
planning with this in mind will stand you in good stead. For example, if you’re
about to invest all your spare cash in a long-term investment scheme, remember
that if you suddenly need a bit more money as you’ve taken maternity leave or
you want to go on a world trip in a career break, your money will be tied up.
Think it through and anticipate possible future needs and changes.
So, quick exercise.
Where are you in your life? How much do you need! What is the next stage for
you? How much are you going to need?
 
From The Book; The Rules of Wealth by
Richard Templar
(Read Rule
29
of Rule of Wealth tomorrow on Asabeafrika)


Read-to-Wealth Series 



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