Early Working Years

The first stage of the financial life cycle begins with a person’s early working years, approximately around age 25. Around this age, adults usually begin developing their careers, and, over the next 20 years, fall into the asset accumulation phase. During this phase, young people also start achieving numerous financial and life goals, including purchasing a house, having children, and building their savings account.

During the asset accumulation phase, it is a smart idea for people to set up an emergency fund and prepare financially for any unexpected events. For example, purchasing a life insurance policy as a young parent is often a wise idea.