Living through your 30’s and 40’s can be challenging, and this time is some offers up some of the most important years of your life. You could be experiencing a newfound stability at home, or learning to live life as a single parent.
Whatever the case may be, middle-agers face a unique set of challenges. Managing your finances at this age is critical to your future comfort in life. Check out a few helpful money management tips for this vital time in your life, and start preparing for retirement now.
Build a cash reserve
It’s important to have a liquid reserve of money, just in case something goes a little off course. Experts say that it’s best to have three to six months of your average income saved in an account that you can access at any given time.
If the roof of your house needs to be replaced or you get laid off from your job, you need to know that you (and your family) won’t end up on the street. There’s no perfect sum for savings, but you should always have a stash.
Be action-oriented in finance
Now that you are a little older, you have to be action-oriented when handling your finances. This tip is especially necessary if you have suffered physical repercussions from a pharmaceutical, or you are injured and denied financial assistance.
The decades spent in your 30s and 40s commonly brings out the medical issues that could have developed along the way. This is the time to be proactive about drawing in the financial reparations you are due.
Work to reduce your debt
Debt gets to me more of a pain in the bottom at your age, and moving forward will be more difficult if you do nothing. Now is the time to take action, and start chipping away at the financial mistakes of your past.
Move forward, and investigate the many ways you can relieve yourself of old debts. Start by acquiring a full credit report from all three main reporting agencies, and sift through the pages with a fine tooth comb. You may find discrepancies that can eventually be dropped.
Max out your employee benefits
If you’ve worked hard through life to establish yourself in a stable career, you should be absorbing the maximum offer of benefits from the company. Every check should contribute something to your 401k, and you should grab up the largest match promise you can from your employer.
Start thinking about leaving something for your family
Getting older means that it becomes more important to think about you and your family’s future. Now is the time to start thinking about leaving something for your family, should your time end. Consider investing in a life insurance policy, but couple that action with the a legally drawn and notarized will.