Your financial decisions in your 20s, 30s, and 40s can have a significant impact on your long-term economic well-being. While it’s never too late to start making smart money moves, the earlier you begin, the better. So, what are some savvy financial strategies for each of these decades?

Your 20s is a crucial decade for establishing good financial habits. It’s a time to focus on building a solid foundation for your future. Start by creating a budget and sticking to it. This will help you manage your expenses and save money. It’s also a good idea to start building an emergency fund that can cover unexpected costs, such as car repairs or medical bills. Additionally, if your employer offers a 401(k) plan, contribute enough to take full advantage of any company match. Compound interest will work its magic the earlier you begin investing in retirement accounts, so consider contributing to a Roth IRA as well.

As you enter your 30s, your financial goals may shift. This is a decade where many people experience significant life changes, such as getting married, buying a home, or starting a family. It’s important to re-evaluate your budget and ensure it aligns with your new priorities. Continue to build your emergency fund and increase your retirement contributions whenever possible. If you’re thinking of buying a home, start saving for a down payment and work on improving your credit score to secure a favorable mortgage rate.

By your 40s, you may be more established in your career and have a clearer idea of your long-term financial goals. Use this decade to focus on maximizing your retirement savings. If you’re over 50, you can take advantage of catch-up contributions to your retirement accounts. It’s also a good time to consider other investment options, such as stocks, bonds, or real estate, to diversify your portfolio. If you have children, start saving for their college education if you haven’t already. Finally, don’t neglect estate planning. Create or update your will, and ensure you have the appropriate insurance coverage to protect your loved ones.