Money Saving Tips for 40-Somethings

August 1, 2017

Regardless of your age, you’re bound to make some money mistakes in the future. For 40-years-old’s, here’s some advice that can help you stay on the path to financial success.

The decade between your 30s and 50s is often so busy that it’s easy to lose track of time. Most people in their 40s are at the age where they have more life experience, a better sense of judgement and wisdom. Not to mention, marriages, kids and mortgages. Considering retirement years aren’t far away, the goal for 40-somethings should be getting on the road to financial freedom. However, when career and child-raising collide, it can be hard to prioritize your income. Future college funds? Retirement? Home renovations? Aging family members?

Regardless of your age, you’re bound to make some money mistakes in the future. For 40-years-old’s, here’s some advice that can help you stay on the path to financial success.

1. Pay Off Your Mortgage

Instead of using your savings on expensive cars, boats or big home renovations, put that money towards reducing your mortgage while you’re still receiving an income. Buying pricey ‘grown-up toys’ might add to your already long list of debts which could halt your savings plan thanks to insurance costs, utility bills and maintenance fees. The faster you pay off your family home, the more wealth you can build for your retirement years.

2. Make Smart Investment Decisions

If you’re investing or thinking about investing in your 40s, make sure that you keep it simple and spread out your investments. Instead of trying to time the market and risking a loss of money, base your investments on your personal financial timeline. This will not only prevent the risk of you losing money, but it will also help you take advantage of long-term stock market growth. Committing to investments is beneficial to wealth, however to see success you’ve got to have a solid financial plan in place.

3. Identify Short and Long-Term Goals

In terms of your retirement savings, future vacations and savings for your kids or other family members, it’s important to have a plan. Whether its typed and printed out or scribbled on a piece of paper and glued to the fridge, you should write down what you need to save for and what needs to be paid off if you want to hit long-term and short-term financial goals. Would you rather be stuck at home paying off debt during your retirement years or sitting on a beach looking out at the Mediterranean Sea? Just a thought.

If you’re in your 40s, your second act of life has just begun. Nip overspending in the butt and work hard to save for your retirement fund, by doing so we guarantee that the future you will be very happy.

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