Hitting 40 soon? Follow these 4 simple financial rules
If you’re hitting 40 soon, you should be thinking about your retirement more seriously, seriously! Every money decision you make can have a huge impact on your retirement plans. Take a closer look at your financial position and see where you’re heading next.
It helps if you have already started taking action by securing your financial future. Take a look at some of the things you should be doing already and if you’re not, take action today.
- Eliminating debts – Your 40s should be when you’re already eliminating debts you’ve accumulated in your 20s and 30s. If you still haven’t, don’t worry — it’s not too late. Some Aussies get a second job to augment their income. Ask us what the best option is for you.
- Maximising your savings – Have you reached your savings goals yet? You should have enough financial cushion by now or at least close to hitting your savings target. You might need to cut back and let go of a few luxuries if you’re serious about securing your financial future. Perhaps consider increasing your super contributions too.
- Avoiding lifestyle inflation – Now that you’re earning more compared to your 20s and 30s, it’s easy to increase your spending needlessly as well. This lifestyle inflation trap is what prevents most Aussies from saving and investing their money. Create a budget plan to accommodate your needs and make sure to put some aside for leisure activities like family vacations.
- Reviewing your retirement plan – Lastly, when you’re at your 40s, it’s easier for most people to panic at the first sign of market volatility. To avoid making a potentially disastrous mistake, review your retirement plans and strategies often. We can help you secure your retirement by ironing out the kinks in your strategies.
Do you still have questions regarding financial management in your 40s? Get in contact and let’s see how we can help you.
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Liability limited by a scheme approved under professional standards legislation