10 Things To Know About Money Before You Turn 40
As you cross a decade in your life, you look back and dwell on the experiences you had and how you could have handled it better. The mistakes you could have avoided that you were unaware of. Health and financial issues are two of the most important issues in one’s life, about which people are initially not very careful, but regret later for not taking care.
Here are 10 things you should know about money before you turn 40:
1. Your Vision For The Future:
How do you envision your future? Do you plan for a second act in terms of a career? Do you plan to dedicate yourself to your family and cultivate a small piece of land. Do you plan to build a big family home? All these things need to be thought upon.
2. Your Current Rate Of Savings:
It is important to look into your savings rate and compute how much have you saved so far. Apart from that, it is also essential you figure out what amount of your income should go into your savings, depending on your lifestyle, family, future plans and kids.
3. How Well Planned Are You For Your Retirement:
When you are nearing 40, it is important you keep a check on how much have you saved for your retirement and whether you are on track for your later years of life or not. Do your savings and investments and support a comfortable life without depending on anyone?
4. How Risky Is Your Portfolio:
It’s easier to take risks while you are still young and don’t have lot of responsibilities on you. As you grow older, it’s better to have a secure portfolio and to know the risk percentage in each portfolio.
5. Your Partner’s Basic Finances:
Most couples talk about retirement and future plans but it is important to know the basics of your partner’s finances, at what age do you plan to retire and how much to save for retirement and your accounts, your logins and passwords.
6. Your Parents’ Finances:
It is advisable to have health and financial checks with your parents once you cross 30. It is important to know from your parents their finances and investments and how much will you need to contribute towards their retirement and health care in their old age.
7. Save For Your Kids’ College:
Parents who save for future college expenses save 46% more than parents who don’t. Invest money in a good plan with a good growth for your child’s education which will take off a big burden in terms of last minute expense in the future.
8. Cover Your Estate Plan:
It’s important you think about your physical and financial well-being and cover all medical expenses and your will. The properties you have, your savings and investments. Sort out all these issues.
9. Make Investments For Big Purchases:
Create saving goals and set aside money for vacations, student loans, credit card debt, kids and other major expenses. Doing so will ease out your financial burden and make it a lot more financially viable for you in the future.
10. Save For A Home:
Planning to buy a home? Make it a part of your saving goal and save enough to make at least a 20% down payment, if not more.