Life often comes at us in waves. Sometimes calm and predictable, other times wild and uncertain. Yet, in its flow, one truth remains: the decisions we make today ripple through the rest of our journey.
And among the most profound of these decisions are those related to money. How we earn it, grow it, spend it, and save it, especially as it aligns with our values at every stage of life.
So, whether you’re just starting out, raising a family, entering your prime earning years, or preparing for retirement, each life stage demands a tailored financial strategy.
Let’s explore these stages, along with the core financial principles and steps that can shape a healthy, prosperous future.
Stage 1: Early Career (Ages 20–30)
This is a time of exploration—of careers, identities, and the thrilling (and terrifying) realization that you’re responsible for your future.
At this stage, you’re likely finishing university or NYSC, entering the workforce, or perhaps starting your own business. Income is modest, but time is on your side. It’s easy to overlook financial planning during this stage, but this is when small, intentional steps can yield exponential rewards later.
Key Financial Strategies:
• Budgeting: Use the 50/30/20 rule—50% for needs, 30% for wants, and 20% for savings/investment.
• Emergency Fund: Save at least 3–6 months’ worth of expenses. In Nigeria, mutual funds or safe high-return investment options like Bravewood can be a good place to start.
• Debt Management: If you have student loans or personal debts, develop a realistic repayment plan.
• Begin Investing: Start small. Consider dollar-cost averaging into mutual funds, ETFs, Nigerian stocks or investment products from platforms like Bravewood, Cowrywise, Risevest etc.
• Insurance: Health insurance is crucial. NHIS or private HMOs can help protect you from unexpected medical costs.
Tip: Start a pension fund early, whether through your employer or as a micro-pension contributor if you’re self-employed.
Stage 2: Growth and Stability (Ages 30–45)
By now, your career is more stable. You may be getting married, raising children, or considering bigger investments. The decisions made here significantly impact your long-term financial well-being.
Key Financial Strategies:
• Increase Savings and Investments: Allocate a higher portion of your income toward investment. Diversify across real estate, stocks, mutual funds, and even Eurobonds.
• Home Ownership: Consider purchasing property. Government schemes like the National Housing Fund (NHF) may offer lower-interest mortgage options.
• Education Planning: If you have children, open an education plan or invest in stable assets, whether dollar or naira to hedge against inflation.
• Retirement Planning: Review your RSA (Retirement Savings Account) regularly. Supplement pensions with personal investments.
• Life & Health Insurance: A life insurance policy ensures your family is protected should anything happen to you.
Stage 3: Peak Earning Years (Ages 45–60)
This is often a time of peak earnings, but also growing responsibilities: aging parents, children in university, and looming retirement.
Key Financial Strategies:
• Asset Preservation: Shift investment focus slightly towards lower-risk assets while maintaining growth potential.
• Real Estate & Passive Income: Consider owning rental properties or investing in REITs (Real Estate Investment Trusts).
• Education & Family Support: Be strategic with financial support to extended family while safeguarding your savings.
• Health Planning: Invest in comprehensive health insurance and preventive healthcare.
• Retirement Simulation: Begin planning how your retirement income will be structured—pensions, withdrawals from investments, annuities.
Tip: Avoid the “black tax” trap—supporting too many dependents at the expense of your own financial health.
Stage 4: Retirement and Legacy (Ages 60 and above)
Retirement is not an end, it’s a transition to a new chapter. Your savings now become your paycheck, and your focus shifts to sustaining your lifestyle, fulfilling long-deferred dreams, and leaving a legacy.
Key Financial Strategies:
• Sustainable Withdrawals: Follow a conservative withdrawal strategy (e.g., 4% rule) to maintain your income over time.
• Healthcare Priority: Ensure continued access to quality health care. You can consider international health plans if financially viable.
• Downsize and Simplify: Consider reducing living expenses and relocating to areas with lower costs of living.
• Estate Planning: Finalize your will, assign power of attorney, and communicate your wishes clearly with family.
• Mentorship and Giving Back: Use your experience to mentor younger professionals or support causes close to your heart.
Tip: Engage a financial advisor or estate attorney to ensure your assets are transferred smoothly and tax efficiently.
Final Thoughts
A financial plan is far more than budgets and portfolios. It’s the story of your finances and the bridge between who you are today and who you hope to become tomorrow, even beyond your lifetime. Make it a story worth telling.
Bravewood provides Nigerian professionals with low-risk, high-return investment products, licensed by the Central Bank of Nigeria.
