Financial Planning Checklist for Every Stage of Life

Introduction

Life never stands still – and neither do your finances. The money habits that work when you’re 25 won’t be enough when you’re 45. Yet, most people keep the same random mix of savings, insurance, and investments throughout their lives.

The truth is: Each stage of life needs a different financial strategy. Here’s a simple checklist that shows you what to focus on in your 20s, 30s, 40s, and beyond.

In Your 20s: Lay the Foundation

• Build an emergency fund (3–6 months of expenses).
• Buy a term insurance plan (early = cheaper premiums).
• Start a basic health insurance policy (not just an employer’s).
• Begin your first SIP (even ₹2,000/month compounds over decades).
• Learn to track expenses and avoid lifestyle debt.
• Invest in upskilling (Technical and Life Skills, both).

Pro Tip: Every raise → increase your SIP, not just your lifestyle.

In Your 30s: Family & Responsibilities

• Increase life cover to match income and liabilities.
• Expand health cover to include spouse/children.
• Start goal-based SIPs (child education, home, retirement).
• Maintain emergency fund at 6 months+ (higher if EMI-heavy).
• Write your first Will and assign nominations.

Pro Tip: Open a separate bank account for your child’s investments – track easily and build discipline.

In Your 40s: Growth & Protection

• Rebalance your portfolio (shift some equity into debt).
• Plan for retirement seriously (consider SWP as an income tool later).
• Ensure adequate term cover & health cover.
• Clear high-interest debts (like personal loans, credit cards).
• Consolidate and document all financial records (use an FRM Tool).
• Ensure financial and legal preparedness of the family.

Pro Tip: Don’t ignore estate planning: Secure clarity over your wealth now, not later.

50s & Beyond: Retirement Ready

• Focus on capital preservation over aggressive growth.
• Build retirement income streams (SWP, annuities, rentals).
• Review and update Will and nominations.
• Ensure spouse/children know about all financial records.
• Avoid big-ticket liabilities (cars, luxury loans).

Pro Tip: Practice living on your expected retirement income 5 years before you actually retire.

Conclusion

Financial Plan is not one-size-fits-all. By following this stage-wise checklist, you can move from earning → protecting → growing → transferring wealth with confidence.

Remember: Financial planning is not an event, it’s a journey. The sooner you start, the smoother the road becomes.

Not sure if you’re ticking the right boxes for your stage of life? Book a Financial Planning Consultation today and get a customised plan designed just for you.