Have you ever wondered why they say Life begins at 40? It definitely doesn’t mean you have to wait till you’re 40 before you start living a happy and rewarding life. Simply put, life becomes better at 40 because you’re expected to have gathered skills, experiences and the means to have an enjoyable life.
There’s another popular saying that a fool at 40 is a fool forever. One indication of foolishness is the inability to manage your finances effectively. Each stage of life is very different, however, 40 is very significant and there are certain financial goals that you must strive to achieve in order to begin enjoying life at 40.
- Purchase A Home: This is without a doubt, the most important financial goal that needs to be achieved in your 30’s. Asides from the relief of not having to worry about paying rent, a home is an appreciating asset. In your 40’s you will likely have a family and be saddled with many more financial responsibilities and It would be much easier when Rent isn’t one of them.
- Build An Emergency Fund: An Emergency fund is a sum of money that is saved for unplanned eventualities such as a health emergency, job loss, urgent travel, etc. It is recommended that your emergency fund is at least 6 times your monthly income. You can build your emergency fund by making a small contribution every month.
- Get Yourself Life And Health Insurance: As you get older, the body is prone to diseases and this is exactly why Health and Life Insurance are very important. Health insurance cushions the blow of high medical costs associated with the treatment of critical illnesses and hospitalizations. Life insurance provides financial relief for your family in the unfortunate incidence of sudden death. Nobody intends to die young but you wouldn’t want your family to be thrown into a bad financial situation if that happens. It is highly recommended to pay for life insurance in your 30’s because it gets more expensive in your 40’s.
- Have A Solid Retirement Plan: At 40, you’re halfway to retirement. Your retirement plan determines whether you would be travelling the world at 60 or stuck living a boring life at home. It also determines whether you would be a blessing or a burden to your kids. Asides from having a retirement fund, it is recommended that you have various sources of passive income. It is also important to have planned activities to keep your mind and body sharp in your golden years.
- Plan For Your Children’s Education: Tertiary education is not cheap and keeps getting more expensive due to inflation therefore, it is imperative that you are financially prepared to fund your children’s education. It is advised that a trust fund is opened as soon as each child is born and periodic contributions are made.
If you’re currently in your 20’s or 30’s, the time to make these responsible financial decisions is now. Thankfully, Crowdyvest is here to help you achieve these milestones seamlessly, thereby ensuring that you live a wonderful life in your 40’s. Please let us know your thoughts in the comments below.