As you approach mid-life, it can be a good time to reassess your finances and put a plan in place for the future.
At this point in life, you’ve likely been working for a while. Perhaps you have some assets to your name like a house or a car, and you’ve probably got loans and bills to pay. Expenses can mount up quickly, especially if you have children and/or older parents to take care of.
Making some smart financial moves now is essential, not only to enjoy some of the fruits of your labour in the present but also to set yourself up for a comfortable retirement in the future.
Here are 5 tips for financial planning in your 40s
- Make a plan
Create a written financial plan that includes your current financial situation, goals and strategies for saving and growing wealth. Having it written down makes it easier to stick to and track. Be sure to review it regularly so it stays aligned with your circumstances.
- Budget wisely
Your 40’s can often bring complex financial responsibilities. Establish a clear household budget and review it frequently. Prioritise your spending so that you can manage cash flow effectively, but still splash out every now and then. It’s a good idea to build an emergency fund of around three months worth of salary. Start with a goal of one month’s salary to make it more achievable and update your plan once you’ve reached that amount.
- Tackle debt
Prioritise paying off high-interest debt first to free up more money for savings and investments. This will help secure your financial future and reduce the stress of mounting interest.
- Maximise retirement savings
If you haven’t already, consider maximising contributions to your superannuation. Salary sacrificing can be a tax effective way to save and could significantly boost your retirement savings in the long run.
- Safeguard your present and future
You’ve put in the work to make your family financially stable, but it’s also worth protecting your finances from unexpected events in life. Life insurance gives you the peace of mind that if you were to pass away or be unable to work due to a serious illness or injury, your family would still be provided for. These policies are often flexible and can be reviewed at key milestones so that they continue to meet your needs and budget.
I can help you create a solid financial plan and choose the right combination of life insurance products to protect it, so you can rest easy knowing your future is secure. Book a time to chat, and how you can create a future of financial security.
Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it, you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.
