In your 40’s? Here’s 5 moves to make so you can get financially ahead.
Being in your 40’s can involve balancing many different responsibilities and it becomes easy to neglect your own financial well-being. But it’s not too late to secure your future. Here are 5 tips that may help you financially make the most of your 40’s.
1. Create a plan
If you don’t have a financial plan, then it’s totally time to get one. Ensure that it’s based on your needs and priorities. By working with a professional adviser, you may be able to tailor a plan that can help you maximise your ability to save and invest.
2. Grow savings
Your 40’s could be your peak earning years, so it may be a good idea to ramp up your savings and funnel some of your income into superannuation or investment accounts. Be sure to do your homework and consult with a professional financial adviser about your options and reducing debt.
3. Check your superannuation
A quick super health check may help you optimise your retirement savings. For example, by choosing a different investment option or type of risk, you may be able to earn better returns on your super. If you have a few funds, consolidating your accounts may help save on fees. Again, seek advice from a professional adviser before acting as you may leave yourself open to losing some important benefits.
4. Avoid lifestyle creep
People usually have a tendency to inflate their standard of living as they earn more and can then afford more things, such as a better car or house. While it’s natural to want the finer things in life, you’ll likely end up with little to no financial gain if your spending rises as quickly or more quickly, than your income. Try stick to your long-term financial goals and remember the big picture. You lived on your income until you got the pay rise or bonus, so chances are, you still can, and stash the difference.
5. Invest more
Your 40’s may be a good time to invest more – or diversify your investments – to help you grow your long-term savings. Keep in mind that it’s important to choose instruments that suit your risk appetite and time horizon. Developing a strategy with your financial adviser might make it easier achieve the return required to reach your financial goals.