As you enter your fifth decade in life, it can be a time when you start to evaluate your financial position. Are you doing well? Or are you experiencing some distress? Take the steps now to change your course if you need. Unless you plan on living forever or inventing time travel, you need to decide what course of action to take.
1. Plan with accessibility. As you look at your finances, is much of it able to be liquidated? Can you turn your assets to cash if you need? I’m just asking for a friend, but if you need the money in an emergency, could you get access easily?
2. Balance your payments. Putting all your money into your future trips or college education or any other single basket isn’t a great financial plan. Most people in their 40’s are looking to end the stranglehold the bank has, also known as a mortgage. A little bit of balance goes a long way, however, don’t let one debt pile up while trying to tackle another. You should also take the time to be putting money away for retirement, a facet of life coming all too quickly for many. Debt reduction can be stealing money away from your future if you’re too focused on it.
3. Focus on retirement. You may feel like a 20-year-old still, but time tells a different story. Retirement is a few short years away. Take the time to make some long-term goals for your financial future after work. What does retirement look like for you? Plan to make that goal a reality. Start looking for additional investments as this time is normally a perfect chance to getting some extra savings plans in place. Avoid the trap of pulling money out of your retirement plans to do this, because it’s hard to put it back again once you do.
4. Consider your job security. Depending on your career, you could now be looking at taking major strides forward or be looking at a change in near future. Getting started all over again could be seriously detrimental to your financial health. Honestly, evaluate your salary, your job security and your tenure at your current position. Unless you’re a major league baseball pitcher, your future salary earnings should be worth considering. But if you are a major league baseball pitcher, I’m not entirely sure why you’re reading this article.
It’s good to take the time every now and then to figure out where you are financially, look at the big picture and adjust accordingly. No better time than in your 40’s to see what the next couple of decades has in store for you. Make smart decisions, plan wisely and you’ll see out the next 20 years with some serious financial success.