Following from our previous discussion, here are some of the strategies that will help you depending on the phases of your life:
1) Accumulation phase
You've just started work and you have lots of debts. You will need to invest in near term goals. Your primary mission is to manage your money and debts so that you do not go bankrupt before 30. Very important, START SAVING! If you start to save $50 per month, there will be some emergency funds and you have the discipline to save more in the future.
2) Consolidation phase
This is in the middle of your career, your earnings should be more than your expenses. Now you can plan for your retirement and play with some investments (such as stocks, bonds, trust funds). If you're uncomfortable with managing money or just too busy, try investing in a reputable trust fund. KEEP ON SAVING!
3) Spending/Gifting Phase
Now that you are going to retire and retiring, your finances should all be in place. You have enough money in investments to last you until the end. You should have some liquid investment that can be converted to cash quickly for your living expenses. This is when your savings will payoff.
Hope this gives you something for you to think about.
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