The Financial Roadmap: What you should be doing at each stage of your financial life - Whitney Hansen | Money Coaching (2024)

I recently did a massive survey of WhitneyHansen.com subscribers. Here’s what I found- many people are unsure of what they should be doing at each stage in their financial life.

You might also be confused on if all the feelings you are experiencing are borderline crazy or totally normal.

So let’s talk about this.

There are typically 3 stages in your financial life.

Beginner, intermediate + advanced.

No shame with any of these either. We all start as a beginner and hopefully, graduate to advanced, and eventually financial independence.

You might be a beginner if you…

• Struggle to stick to a budget
• Have a little to no savings + if an emergency hit- you’d be SOL
• Carry debt + aren’t quite sure what the best pay down strategy is
• Have debt + aren’t concerned about it because you can afford the monthly payment
• Get scared when you hear people talk about financial lingo (IRA, life insurance, zero sum budget, liquid assets, cashflow, stocks, bonds, index funds, asset classes, liabilities, hedging your risk, etc)

Normal feelings + emotions you might be experiencing during this stage

• Overwhelmed + in over your head
• Stressed out- just thinking about money stirs up all the feels
• Scared to look at your bank account
• Lost + confused- why should I even bother?
• Silently praying that your card isn’t declined when you swipe your card
• Feeling like you are constantly broke
• “I should be further than I am in my financial life”
• “I know I should be better with my money, but I’m just not sure where to start”

Metrics to hit before moving to the next stage

1. Save 1 month of living expenses in your starter Oh sh*t Fund
2. $500 buffer in your checking account so you don’t overdraft
3. Clarity around exactly how to pay off debt
4. Organization around your finances
5. Grasp on financial vocab
6. Detailed budget
7. Knowing how to navigate + where to pull your credit report
8. Automation of your monthly expenses + savings
9. Setting up your savings on autopilot

How long does this stage last?

1-3 months

You might be intermediate if you…

• Live on a budget comfortably every month
• Actively + aggressively paying off debt
• Building up your Oh sh*t Fund
• Putting some money into retirement, but not sure what it all means
• Know exactly how debt interest is charged (simple vs. compound interest)
• Understand that not all debt is created equal

Normal feelings + emotions you might be experiencing during this stage

• Unsure if you are doing the right things at the right time
• “I should know how to do this, so why am I struggling”
• “I work hard. I should be able to treat myself without feeling guilty”
• “I just need to earn more money”
• It feels like paying off debt is taking forever
• “Should I be saving for retirement while I’m paying off debt”
• You are constantly saying no to family + friends invites

Metrics to hit before moving to the next stage

1. Building up 6 monthsof living expenses in your Oh sh*t Fund
2. Aggressively paying off debt by reducing lifestyle + increasing income
3. Living on a budget with noproblems
4. Investing in your future by putting20% into your IRA
5. Being able to explain how credit card interest is charged + how that differs from amortized loans

How long does this stage last?

6 months- 5 years

You might be advanced if you…

• Are out of debt (excluding your mortgage)
• Investing for retirement and long-term goals on your own
• Plan on paying off your mortgage at a maximum of 15 years
• Build your credit without carrying balances on your cards
• Saving for your kids college funds using a 529 or UTMA
• Comfortably negotiate raises
• Investing in real estate or a second home (without feeling the extra monetary stretch)
• Minimizing the amount of taxes you pay every year

Normal feelings + emotions you might be experiencing during this stage

• “I don’t stress about money as often as I used to”
• Impatient; everything seems to be taking soooo long to get results
• “When do I need to hire a CPA?”
• You fear market dips (especially if you’re over leveraged or not diversified)
• Unsure if you should put extra towards long-term investments or retirement

Metrics to hit before moving to the next stage

1. Completely consumer debt free
2. Diversification in your overallportfolio
3. Tracking your net worth and seeing a growing trend linemonth after month
4. Investing on your own outside of retirement
5. Maxing out your retirement contributions every year
6. Pay your mortgage off within 15 years

How long does this stage last?

Largely dependent on your goals, but typically between 5-15 years.

Financial independence.

That’s the entire goal of life is to get to the point where money is no longer a barrier to your life. You can choose between continuing to work for fun, or hang up your hat and hang on the beach for a while.

Pin this infographic to remind yourself of the different stages, and common feelings through each stage.

These stages were compiled from working with hundreds of people in various life stages. I started realizing that blanket advice wasn’t working because everything was at different levels in their lives.

I hope this helps you identify where you are and what you can do to “level up.”

If you need help getting to the next level, I would love to work with you individually through one-on-one coaching. Coaching can help you level up as quickly as possible so you can get to financial independence.

Learn more about coaching here.