The Financial Cycle of Life

As you know, in life we ​​all go through different stages childhood, adolescence, youth, adulthood, and maturity. And as you will have verified, different needs appear in each of them. Your goals and your circumstances change. And your financial needs evolve too. It is what we call the Financial Cycle of Life.

The Financial Cycle of Life
The Financial Cycle of Life

Probably now you do not feel an immediate need to make decisions that will mark your future. Why think about your child’s studies when he is just one month old? Or why worry about your retirement when you just turned 30 and you just want to buy a car? Why think about reform if what you would like is to have the house of your dreams? Or travel around the corner when what you’ve always wanted is to go around the world?

To meet your dream goals, you must know what they are and when you want to achieve them. And anticipating needs will be the key to success. Otherwise, they can become a difficult burden to face when the time comes or you will not be able to carry them out at all.

 Here is a brief overview of the stages of the Financial Cycle of Life. They are the same for everyone, but the objectives in each of them will be different for each of us.


It is the stage in which they keep you when you are a child, a teenager, or a young student. We haven’t made many decisions yet, let alone financial ones.


The most intense and productive stage would normally correspond to youth, adulthood, and also maturity. It is probably the one in which you will have to make more financial decisions and where everyone pursues their own goals. Let’s take these as an example:

Become Independent

Normally, when you are young, you think of becoming independent, of starting a professional project…
Take advantage of the time, make a plan and you will achieve your goals!

Your family

You have become an adult and perhaps you think about starting a family and having children. It is time to face important investments: a new home, a family car… You will have to support your children until they are self-sufficient. And of course, you will want the best for them: training, studies abroad…
Plan it in advance and you will achieve it with less effort!

Dream Retirement

Fixed expenses such as keeping your children or the mortgage decrease. It is common for your purchasing power to increase. A good time to invest in thinking about your future.

Financial Autonomy Stage

The sooner the better. How many times during your work stage have you thought “How I would like to have free time for this or that!” and then… you decide you will do it when you retire! Or… “I will retire at 55!” They are dreams out loud that could come true if you plan them in advance.

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