They say that life begins at 40. Which means that financial planning is more important than ever at this stage in life. The sooner you begin to plan, the more comfortable you will be in retirement.
Our perspectives start to change when we reach our forties. The kids are growing up, and their future becomes a big part of your financial planning. You may be planning to downsize your home or take advantage of the increase in income when the kids move out.
Even if your children are not quite grown-ups yet, your forties are the peak earning years, and you may find that you need guidance on how to make the most of higher income levels.
Whatever age your little ones are, supporting them financially will always be one of your main concerns. Whether you’re planning for:
- School fees
- University life
or just want to make sure that there’s enough left over to treat them to something special, your children are one of the main factors in both your life and your financial planning.
You may not be thinking about finishing work for another 20-30 years. But, the sooner you begin to make plans for when the time comes, the easier it will be to transition. Use this time to make sure that your finances can support the lifestyle you want to have when you leave the grind behind.
Your forties are prime earning years. This is when those years perfecting your trade begin to pay off.
Changes in life mean that you may find that you have extra income. Managing this income responsibly will mean that you can have extra treats in the short-term, whilst preparing for even bigger adventures in the future.