7 Financial Goals Everyone Should Hit by 50

There are seven financial goals you should try to hit before age 50. Peter explains these seven goals and how to use them as a framework for ensuring you’re on the best possible track with your money.

💰 Have a cash buffer
🚫 No consumer debt
📈 Have a real investment strategy
🔒 Protection for your assets
🎯 Hit your savings targets
🗣️ Have the money talk
📝 Have a financial plan

It’s important to have 3-6 months of expenses saved by this time and seven times your annual income saved and invested. That way, you have a cash buffer in case anything happens and your investments are compounding nicely.

Your 50s are likely to be your prime earning and spending years, so it’s vital to protect your assets and income. What would happen if you were no longer able to work during these high-income years? Make sure that you’re protected with an up-to-date estate plan and simple, low-cost insurance.

There’s a common myth that it’s good for your credit to keep some kind of balance on your credit cards. This is completely untrue. Having a mortgage is fine, but by 50, you should aim to have no consumer (credit card) debt.

Open communication about money can be difficult, but it is essential. You should know your parents’ future plans, your kids’ future plans, and your own plans. That way, you can understand what, if any, additional possibilities you will have going forward and account for their monetary response.

Too many people work hard and hope they’re in a good spot. But without a plan, you’re essentially working with your head in the sand. A plan doesn’t have to be something overly complicated. It just means you making great decisions with your money.

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Timestamps:
0:00 - Cash buffer
1:30 - No consumer debt & investment strategy
2:53 - Protect assets
4:47 - Savings targets & money conversations
7:14 - Financial plan

[Mark-bhmb]

1. Have a cash buffer of 3-6mos expenses.
2. Have no consumer (credit card) debt.
3. Have an investment strategy.
4. Protect assets (insurance and estate plan)
5. Hit savings targets
6. Have money conversations with family
7. Have a financial plan.

[jmmky]

Watching this at 33. Will take all of this under advisement. Thank you.

[chadbailey]

Not enough content out there for this age range. Thank you sir 🙏🏾

[danielandrew]

Thanks Peter. Very informative and it's a solid plans

[saksitb]

Thank you for Good information. I miss 1 targets but not much.

[dannytetreault]

7 Financial Milestones You Should Reach by Your 50’s:
1) Have a cash buffer
2) Have no credit card debt
3) Have a real investment strategy
4) Have your assets protected
5) Hit your savings targets - 7x your annual salary (15% of current income)
6) Have the money conversation - aging parents, maturing kids flying the coop/returning
7) Have a financial plan
Thanks, mate. New to your channel!
Danny T.

[bunnobear]

Great video, we are well on our path for retirement :)

[domxgun]

I just turned 40, I plan on retiring at 50. This is good and makes me realize I've got plenty of time.

[Martin-ogzg]

Watching this @ 43... I'm 20 years behind, literally.

[richfrommitch]

Every finance YouTuber: basically the Ramsey Baby Steps.
People: so what else should I do?
Every finance YouTuber: I dunno bro but hey here's a video about 10 things wealthy people NEVER buy.

[phobedavis]

This video is very important. At age 50 if you lose your job chances are you are going to make less money. Get your house in order now.

[Bacrenfencing]

Leaving money in a 4.5% savings account when realistic inflation running at near sense to lose 5% of your purchasing power annually 🙄 #BTC is the modern way to store your wealth.

[jml]

I hit my goal by 50. Home and 3 rentals all paid off. No debt whatsoever. My job is relatively easy and stress free making $200k. Just hits 51.5. So I will continue to work. 2 kids going to college soon, rentals and 529 covers everything. Next goal retirement at 60. Cash in all 4 properties worth at least $4M and move somewhere cheaper than the SF Bay Area.

[marcusarelius]

What is an ideal high yield savings account I can look into?

[ShahedChowdhuri]

Great video, Peter!

Some comments:

1:47 - when you mention the myth of maintaining credit card debt, I think people suggest using credit cards not to maintain a balance but to maintain credit usage and pay in full each month

3:50 - when you mention insurance and then clarify it as term insurance, I think it would be useful to use the words “life insurance” (and “term life insurance” when expanding it) as the average person equates the word insurance with “health insurance” and not “life insurance”

[jstall]

lol these are always fun because they basically don’t apply to most people under 45 since wages haven’t kept up with cost of living since the 70’s. The debt part might vary. Most financial goals are a joke because concepts like these may apply to boomers but no one else.

[cameronpickard]

7 times your annual income in investments

[linlaoshistrike]

Pffff you should never get into credit card debt starting your 20s.

[rickswing]

Ah shoot. I’m 57. I’m so far behind.
But isn’t it crazy I’m the happiest person I know.
I live on a Hawaiian beach with my entire family.
I watch a breath taking sunset every night.
I have no debt.
I have no savings.
But I live better than a king.
I won’t be needing this old body 30 years from now, so there’s no need to prepare for it.
Enjoy everything in life immediately. Or get old and enjoy all the things you can’t do now.