The rules vary based on age.

In your 20s…

You have more free time than you know what to do with. Although you may have spent the last 16 years in school, this is the time you need to amass those 10,000 hours building your skill stack (i.e., stuff they don’t teach you in school).

This is not the time to sit around wasting time in non-productive activities like partying, playing video games, social media, etc.

I did my share of the former. Pong on my Atari was not as fun as Minecraft. And there was no social media cuz there were no computers.

In addition, this is definitely not the time to spend wasting your time on a dad-gum smart phone — a total time-suck you’ll never remember on your death bed.

No smart phones when I was in my 20s.

But no one’s tombstone says, “Her lies Suzi “chip-on-the-shoulder” Sassypants. No one read her zingers (cuz they thought she just had issues).”

Unless you’re making money with your smartphone, stick with your flip-phone — you don’t need a $1000 texting machine.

In any event, the main rule for building wealth in your 20s is to moderate expenses and start investing early. Maybe set up a Roth IRA with Vanguard. Invest $100 a month in something like VTSAX (ETF: VTI). This will make you a millionaire at retirement. If you’re vested in an employer’s matching 401(k), then obviously take the free money. You may be limited with your investment choices, but look for a total stock market index fund or an S&P 500 fund.

I did not do this…

Whatever you do, don’t spend money you don’t have for Instagram photos. Trust me from experience, you will live to regret using credit cards to do things you really can’t afford in your 20s trying to attain the lifestyle of someone much more experienced in life.

At age 20, it will take just $79 a month to be a millionaire at retirement.

In your 30s…

You’ve been working hard. Hopefully, you’ve gotten a framework in place. You follow a budget. you’re not living paycheck to paycheck. your credit cards have a zero balance.

Mine did not until I was about 38, so I’m not judging.

Often called the messy middle, your 30s will be (or maybe were) a time that you lived your life in fast forward. Your time is not your own, especially if you have started a family. You are always busy, and your money is being used for diapers, formula and clothes they grow out of every 2.37 months.

Don’t misinterpret me. My kids are great, but they required a lot of feeding, nurturing, and leading. And if you were a single parent like me doing all the heavy lifting, you feel like you were hit by a double whammie!

Although you still may feel invincible, you need to make sure you have life insurance and possibly even disability insurance. At this stage, your family may not be able to afford to live without your paycheck.

Our long-term disability policies have 60-day elimination periods. the benefit is 65% of our gross income. Why only 65%? It is tax-free, should w need it.

This is probably the last stop on what money guy Brian Preston calls the “wealth multiplier express.” At age 30, it now takes $215 a month to be a millionaire at retirement.

I have really transitioned from Dave Ramsey’s Baby Steps to the Money Guy’s financial order of operations. (Probably due to a certain amount of confirmation bias…)

In your 40s…

You have a lot of wisdom now. Your money has been working for you for a couple of decades now. You never carry credit card balances. Your income is increasing in your career. However, don’t succumb to lifestyle creep. just because you can afford a more expensive car doesn’t mean you need one. Don’t sweat low interest mortgage loan. You probably only have 10-15 years remaining. Do be invest for retirement as long as you can.

My money had been working for me for about 5 years at age 40. I had to play catch-up.

At age 40, you now would need to start investing $608 a month (more than you’re allowed to invest in a Roth) to retire with a million bucks. If you’ve been successful in your 20s and 30s, you’d only need to be investing $79 or $215 a month, but you may be looking to invest more.

In your 50s…

This is where I am. A few years ago my life stopped feeling like chaos, like I was almost free. You may be driving Tesla now, and you have likely invested in your home. For us it was a BMW. (The one we have now we hate and want to get rid of!)

One wrinkle you may encounter (unless you planned), is paying for college, paying for weddings, and caring for elderly parents. The 50s can seem like your 30s again. In fact, I hear lots of people say 50 is the new 30.

In you 60s…

Your parents may have passed, your children are possibly married, and you are getting ready to bring this ride in from its final race.

Dave Ramsey says that you need to purchase long-term care insurance the day you turn 60. We will.

In your 70s…

You’ve made it to your golden years. Hopefully, you’re not passing out smiley face stickers at China Mart. Hopefully you’ll be sipping mai tais on the beach someplace. You’ve converted you asset allocation to heavy bond by now. Enjoy your decades of hard work.

As Always…

Thanks for reading! I hope this information provides food for thought. Remember that I am not a certified financial planner, a certified public accountant, a licensed real estate agent, etc. My content is for educational purposes. I am a math educator who happens to have a finance degree. Like they say, never take financial advice from a math teacher! (Do they really say that?)

But you should spend less than you earn, invest the difference, and stay out of debt!

I would so appreciate your sharing my content with anyone you feel could benefit. And if you would like a free exploratory conversation or just want to shoot the breeze about personal finances, call me and leave a message or send a text to 570-731-0425.