In your 40s? Here’s what you need to consider to financially get ahead…
Being in your 40s requires balancing many responsibilities and it can become easy to neglect your own financial wellbeing. However, it’s not too late to secure your future.
Here are 5 tips that may help you financially make the most of your 40s.
1 | Create a financial plan
If you don’t have a plan, it’s time to get one. Ensure that it’s based on your needs and priorities. By working with a professional adviser, you will be more successful to tailor a plan that helps you optimise your ability to save and invest.
2 | Grow your savings
Your 40s could be your peak earning years, so it may be a good idea to increase your savings and set aside a portion of your income into your superannuation or investment accounts. However, be sure to do your homework and consult with a professional financial adviser about your options.
3 | Give your super a “health check”
A quick super health check may help you optimise your retirement savings. For example, by choosing an alternative investment option or type of risk, you may be able to earn better returns on your super. If you have multiple funds, consolidating your accounts may help you save on fees. Again, it is wise to seek advice from a professional adviser before acting.
4 | Avoid lifestyle creep
People generally have a tendency to increase their standard of living as they earn more as they can afford more things, such as a better car or house. While it’s only 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 as your income. Try being disciplined and be aligned to your long-term financial goals and remember the big picture.
5 | Consider investing more
Your 40s may be a good time to invest more – or, diversify your investments – to help you grow your long-term savings. But 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 to achieve the return required to reach your financial goals.