What your financial predicament says about your investment future. Although most people realize that investing their money is a lifelong process that should be started sooner rather than later, a lot of individuals put it off because it either feels too complicated or they feel like their financial predicament does not allow for investments. However, this could be further from the truth, as successful investing comes from disciplined saving habits and having a strategic roadmap.

The only thing that will directly affect your investment situation is your age, everything else can be worked around. So whether you are a young professional, a thirty-year-old adult, a newlywed couple, or a single mother, there is always room to invest regardless of your financial situation. Here are a few things that you should know when it comes to investing in your future based on financial standing.

What Everyone Needs to Know Now

Investment decisions are extremely personal and unique due to individuals having different viewpoints on investing, money, and future life plans. However, there are some basic rules that everyone needs to know. Here they are:

• No matter your age, choose to have a cash fund specifically for emergencies. You can do this either through a liquid money market fund, through a traditional savings account, or through a certificate of deposit.
• Always protect your savings from devalued inflation by evaluating your risk tolerance.
• Have all investments take into account tax considerations.
• Always schedule annual reviews as this keeps you in the loop and helps you spot potential problems.

The above tips are applicable to all walks of life at all stages no matter what the financial standing is. However, we know that someone in their thirties who are expecting their first child will have a different outlook and capability with their investments than a single mother in her twenties. So, let’s take a look at some tips that factor in different financial situations.

• Young Professionals: should look to build up a savings account with a sizable cash reserve. This can work as an emergency fund or as a way to start disciplined saving habits. In addition to this, young professionals should look to avoid taking on any debt and to pay off current debt standing. While making contributions to your savings and debt, start a retirement fund and make monthly contributions. If you feel like you can’t, find a way to do so anyway. This will cause you to take a hard look at your current finances and “cut” out something that would be better spent on retirement. Even if it is only $20-50 a month, this is better than nothing.
•  Your First Raise: if you are part of a company that has a sponsored retirement plan,  increase how much you contribute to it. If not, then take the extra cash and “pay yourself” first by contributing it into investment opportunities that offer tax-exempt interest like municipal bonds. You should also look to increase your cash reserves in preparation for future goals like buying a house or a vehicle.
• Married Life: Do a double take on your combined income and expenses. Determine what your new investment allocations can be with your new partner. Also, if you put any marriage bills onto a credit card, pay it off immediately.
• Buying a Home: this is where that cash reserve comes into play. Invest some of these non-retirement savings into the down payment, moving, and closing costs. This way, you don’t have to change how much you are allocating towards your retirement plan each month.
• Choosing to Have a Baby: the main thing here is to increase your cash reserves as you will need the funding for baby gear and you may want to increase your life insurance policy. Also, begin to start a college fund if you plan on helping your child fund schooling.
• Job Changes: do a complete review of your current investment strategy. Accommodate it to fit in the new salary and any benefits you may be getting. If you had a company-sponsored retirement fund, look at rolling the money into a new plan or into an individual retirement account.
• Empty Nest: once all the children are out of the house, boost your monthly retirement payments.
• Reaching 60: take a look at where your retirement fund allocation is at this point. You may need to boost your investments if your end goal is not on track.
• Retirement: take a look at the options you have for money removal. If you are not careful here, you will end up taking too much out per month and not having enough to live off of in your later years. You will need to review your combined potential income from all sources and reallocate your investments to provide you with income and growth. You still want to invest each month to ensure that you are beating inflation and funding your income properly.

The idea here is that if you put the time into learning about investing and about what is right for your situation, you will be able to choose the best strategy to successfully get you to where you want to be regardless of your financial situation.