Financial Goals for Every Phase of Life: A Case Study Approach

19 June 2025

Financial goals aren’t a one-size-fits-all strategy. They evolve based on where you are in life—what works for a recent graduate won’t necessarily apply to someone nearing retirement. But how exactly do you plan for each stage?

Let’s take a deep dive into different financial life phases through a case study approach. By the end, you’ll have a clear roadmap to set and achieve your financial goals, no matter your age or situation.

The Early Years (20s): Laying the Foundation

Case Study: Jake, 25, Entry-Level Engineer

Jake has just landed his first job after college. He earns $55,000 a year and has $30,000 in student loans. Like most young professionals, he wants to enjoy life but knows he should start planning his finances.

Financial Goals for This Stage

1. Build an Emergency Fund – Life is unpredictable. A sudden job loss or medical expense could derail everything. Jake decides to save at least three months’ worth of expenses (~$6,000) in a high-yield savings account.

2. Repay Debt Strategically – Jake has student loans with a 6% interest rate. While making minimum payments, he also allocates extra money to pay off high-interest debt first.

3. Start Investing Early – Thanks to compound interest, the earlier you start, the better. Jake contributes at least 10% of his income to his employer’s 401(k), taking full advantage of their 5% match.

4. Develop Smart Spending Habits – He sets a budget and uses apps to track expenses, ensuring he enjoys life while saving responsibly.

The Growth Phase (30s to Early 40s): Balancing Responsibilities

Case Study: Emma & David, 37, Dual-Income Household

Emma and David are married with two kids. They earn a combined income of $150,000 but juggle a mortgage, childcare expenses, and retirement contributions.

Financial Goals for This Stage

1. Own a Home Without Overextending – They bought a house within their means, ensuring their mortgage doesn’t exceed 28% of their income.

2. Fund Retirement Aggressively – With financial security in mind, they each contribute 15% of their salaries toward retirement plans.

3. Save for Children’s Education – College won’t be cheap. They open a 529 savings plan and contribute $300 per month, letting compound growth work its magic.

4. Increase Emergency Savings – With kids depending on them, they expand their emergency fund to cover at least six months of expenses.

5. Get Adequate Insurance – Life, health, and disability insurance provide a safety net for their family’s future.

At this stage, balance is key. They’re managing short-term needs while securing long-term financial stability.

The Peak Earning Years (Mid-40s to 50s): Wealth Accumulation

Case Study: Mark, 50, Senior Manager

Mark is earning a comfortable six-figure salary but feels the pressure of retirement planning. He also wants to help aging parents while ensuring his children are financially secure.

Financial Goals for This Stage

1. Maximize Retirement Contributions – He maxes out his 401(k) and invests in a Roth IRA for tax-free withdrawals in retirement.

2. Diversify Investments – Mark allocates funds across stocks, bonds, and real estate to mitigate risk.

3. Plan for Aging Parents – With his parents retired, he helps them manage their savings and explore long-term care insurance.

4. Eliminate Debt – He aggressively pays down his mortgage to enter retirement debt-free.

5. Reassess Estate Planning – Updating wills, assigning power of attorney, and ensuring beneficiaries are documented is crucial at this stage.

At this point, the key is to solidify wealth and ensure financial independence heading into the golden years.

Retirement Years (60s & Beyond): Preservation & Enjoyment

Case Study: Susan, 67, Retired Teacher

Susan spent decades saving and investing wisely. Now retired, her focus shifts from accumulation to preservation.

Financial Goals for This Stage

1. Create a Withdrawal Strategy – She follows the 4% rule, withdrawing $40,000 annually from her $1 million portfolio to maintain a steady income.

2. Optimize Social Security Benefits – By delaying her benefits until 67, she maximizes her monthly payments.

3. Control Healthcare Costs – She invests in Medicare supplements and long-term care insurance to protect against rising medical expenses.

4. Leave a Legacy – Susan sets up a trust to pass wealth to her grandchildren efficiently.

5. Enjoy Life Without Guilt – After years of saving, it’s time to travel, explore hobbies, and enjoy the fruits of her labor.

Final Thoughts

Financial planning is a journey, not a sprint. Every phase of life presents unique challenges and opportunities. Whether you’re just starting out or preparing for retirement, having well-defined financial goals will set you up for long-term success.

So, what phase are you in right now? And more importantly, do you have a game plan?