Financial planning is important no matter what age you are

You want to start planning for retirement at a young age, starting as soon as possible.

The key to all of this is a few major priorities, including always saving in an emergency fund that is set aside for big unexpected expenses. It also benefits from insurance, including disability insurance. This will ensure that if you are in a situation where you cannot work, you will be protected.

Dan Geltrude is the founder and managing partner of Geltrude & Company. He says that once you hit your 50s, it’s important to have a real commitment to savings.

“You have to be really careful about your lifestyle. This is not the time to spend too much,” he says.

Those at this point have the opportunity to make a “retirement” in 401k and IRA plans. Many may have the opportunity to invest even more money in these plans than when they were younger.

Geltrude, who is a professor of accounting at Montclair State University, told Scripps News that while in your 20s and 30s you need to have a commitment to financial planning, it can look a little different for each person.

He is the author of Positive Financial Karma and stresses the importance of making sure our parents are taken care of too so we don’t have an emergency when they are older.

It’s important to consider how your budget needs to evolve as you and your family age.

Geltrude says to take advantage of compound interest so that over the years, your money will continue to grow and work for you.

“It’s all about budgeting for your future when you first get out of the blocks, say 25 to 35,” he says. “Then after that, you get into your mid-30s to mid-40s. That’s when you want to really start managing your money well.”

Geltrude says you want to make sure you put at least 15 percent of your earnings into a retirement plan. This could increase over time depending on your financial goals.

For those with kids going to college, fund as much as possible in 529 plans, which are tax-deferred, he advises.