Building Financial Success in Your 30s and 40s
Posted on Friday, March 23rd, 2018
Building financial success in your 30s and 40s. Based on your age and life cycle how you build financial success will be different. In part one we explored financial tips that you can use in your 20s. Read it here, if you haven’t already. In part two, we will explore more financial strategies that you can apply in your 30s and 40s.
When you reach your 30s, the expenses can start to mount up and become larger. For example, you may be planning to get married, start a family or buy your first home. Even though your career may be paying you more money now than it did in your 20s, it doesn’t take a long time for expenses to start to add up and make you feel overwhelmed. To reduce stress and keep your financial goals on track, here are a few strategies to keep in mind during your 30s:
- Be careful and mindful of spending habits and big life events. If you’re paying for a wedding, keep it within a budget that you can afford. Remember, it’s the experience that matters most when it comes to these types of events and you don’t want to be paying off your wedding in your 40s.
- Build up your insurance cover and plan for the unexpected. If you’re getting married and starting a family, you have more people and assets that you need to protect now – make sure that you insurance cover is what you need in the event that you get hurt or you’re not able to work due to an extended illness. Talk to a qualified financial professional to see what type and how much insurance cover you need.
- Don’t forget about retirement planning and savings. While people in their 30s are still young, it takes a good deal of money to retire comfortably on. In the future, it’s going to take even more money to retire than it does now. To do this, make sure that you’ve tracked down all of your supers and work with a financial professional to ensure you’re putting away enough money to meet your retirement goals.
Once you reach your 40s, it’s time to have a solid financial plan in place and stick to it. At this time, it’s also important for you to figure out what you want out of life and start thinking more about retirement. In addition, here are a few more tips to keep you on track:
- Don’t worry about what everyone else is doing or spending their money on. A lot of people fall off track financially because they are trying to keep up with their friends and family. However, by doing so, you may end up not saving enough or going out of your budget resulting in debt.
- Take care of your kids, but be mindful of your spending. At this time in life, school expenses and having a home large enough for the whole family can add extra financial pressure. It’s very easy to give into these types of situations, but it can also cause you to fall backwards in your financial goals if you overspend. Look for areas to cut back in, such as second hand clothing and uniforms; and don’t feel the need to upgrade homes and pay more money when your children will be leaving home to start their own lives in the coming years.
Overall, when you’re in your 40s, it’s essential that you stick with the kind of lifestyle that you can afford. Watch out for bad spending habits and keep your retirement goals in focus.
If you feel stuck or need additional help, contact a qualified Ricarmo Financial Group adviser today.