Financial Life Stages

All of us go through four fundamental financial life stages. Know your financial life stage first then plan your wealth generation based on your life stage. Here are the fundamental life stages:

  1. Start-up Stage - This is when your only source of income is your salary or earnings.
  2. Build-up Stage - This is when you now have some income coming from savings and investments, which contribute at least 20% of your total income. Your money is starting to work for you already.
  3. Asset Allocation Stage - This is when a good portion of your income, around 30% to 60%, is being provided by your savings and investments.
  4. Retirement Stage - This is when the income from your savings and investments is your only source to support your living expenses.

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