I know I just said that your 30s can be the most fulfilling of your life, but your 40s have the potential to be even more so. You have gained enough experience to be confident in the workplace and at home. You should take pride in your relationships and watching your family and children grow. Although, there is also the added stress that comes along with these responsibilities.
Relieve any financial stress you may have, and follow these tips to have a smooth transition into your 40s.
Focus On Retirement
Your most important savings goal should be retirement. Make sure you know what your goals are and if you are on track to reach them. Many experts even suggest that retirement savings should take precedence over children’s college savings. Teenagers entering college have the advantage of applying for loans and scholarships. These options are not available for retirement.
Evaluate Your Life Insurance
If you bought life insurance when you were younger, that policy may not fit your current needs. For instance, a spouse and children may not have entered the picture. Make sure your death benefit will cover your current obligations. If you are not as close to reaching your goals as you would like, it might be time to convert term life insurance to a permanent policy. Speak to a life insurance expert to learn about your options.
Work Towards Paying Down Your Mortgage
For many people, a mortgage is the last major debt they have. Make sure you are up to date on your payments. If you have extra funds, you might want to consider funneling more toward this loan. Once you pay off your mortgage you will be debt free, and will own your home outright.
Don't Take On Any Debt
This is the time of your life when you should be shedding debt, not taking on more. Don’t fall into the trap of purchasing products beyond your means with credit. Make a budget and stick with it. Try to avoid any unnecessary purchases. Paying for everything with cash will help keep you honest.
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