Top 3 money tips for women at every age

In your 20s

1. Consider income protection

Your income is the key to your financial health. So you may want to consider Income protection insurance – which is designed to replace a percentage of your income (typically up to 70%) if you can’t work because of a serious illness or accident. It could be a real lifesaver if you ever need it, and the premiums are generally tax-deductible which is a nice bonus.

2. Start a regular savings plan

If money tends to burn a hole in your pocket (you’re not alone there!), arrange to have some of your pay put straight into a high-interest savings account, or set up an automatic transfer just after pay day. Automating your savings means you don’t have to think about it, the money just goes somewhere safe before you can spend it.

3. Improve your financial literacy 

Take 5 minutes a day to read about financial matters from a trusted source like ASIC’s Money Smart website. There’s a heap of resources on there to help you learn about money and demystify things like investments, superannuation and life insurance. 

In your 30s

1. Protect your income, debts and dependants

You likely to have more financial responsibilities in your 30s, which puts even more pressure on you and your income. If you don’t have any life insurance (check your super first), now’s the time to investigate what you may need to cover your income, debts and dependants if something happens to you.

2. Fire up your savings

Your 30s is a prime time to make your money work harder – either by buying a home or investment property, or investing in shares or managed funds. If you’re planning to take time off work to have children, you want to build as much of a buffer as possible to take some of the pressure off later.

3. Consider getting financial advice

As your income increases and your financial responsibilities grow, the stakes riding on your financial decisions get higher and higher. Consider seeking professional financial advice to make a solid plan for the future. It could make a huge difference to your financial position down the track, and should help you rest a little easier in the meantime. 

In your 40s

1. Review (and potentially upsize) your insurances 

Your 40s are often when your financial responsibilities are at their peak – especially if you have children and/or you’ve upgraded to a larger home. If you don’t have any life insurance, or if it’s been a while since you took out your cover, it’s a good time to get a health check with a financial adviser.

2. Take advantage of super strategies

While retirement is still a long way off, now’s a great time to plant some seeds for the future. If you can afford to put a bit extra into your super each pay through a salary sacrifice arrangement, you could save yourself tax and make a significant difference to your super balance later.

3. Review or seek financial advice

Your life and career may have changed significantly over the last decade, so you should review any financial planning strategies you’ve previously put in place to make sure they’re still right for you. If you haven’t yet formed a relationship with a financial planner, now is a good time to get started.

In your 50s

1. Review (and potentially downsize) your insurances 

Life insurance is designed to flex up and down as your responsibilities increase and decrease. If your debt levels reduce, or you have kids who are no longer financially dependent on you, it might be an opportunity for you to reduce your level of life insurance. 

2. Get serious about super

This is the decade you really need to make the most of the opportunities in superannuation. By now you’ve hopefully built up a significant nest egg, but there’s still a lot of work for your super to do when it comes to supporting you in later life. If you’re not already doing it, now would be a great time to commence a salary sacrifice arrangement to help your super grow and save yourself tax.

3. Start planning for life after work

When you’re in your 50s, a number of retirement planning opportunities open up – including transition to retirement strategies, which may be available from age 55 to 60 depending on your preservation age. This is a critical time to get financial advice as decisions you make now could set you up for a comfortable retirement.  

Where to start?

Check out ASIC’s Money Smart website for free, independent guidance on all the topics I’ve covered above. There’s even a tool to help you find a qualified financial adviser near you. 

Whatever your age, it’s never too late to improve your financial health. Why not get started now?