Whether you have positive feelings, a looming pit of negative feelings, or strongly mixed feelings about turning 40, the truth is there are some inspiring things you should most definitely consider when you reach this mile stone.
Let’s get one thing straight, 40 does not mean you are old! By the age of 40, most individuals are settled in the career path they are travelling on, they have figured out their own values and what they want out life – 40 is just the beginning.
There’s no point coming up with unrealistic expectations of how life will be after your 40th birthday. However, with some strategic planning, you may be able to accomplish more than you first thought. If you have children, it can be difficult to spread your money in order to cover education fees, and building p a steady nest egg for retirement. However, we’ve compiled a list of both personal and financial goals to consider.
- Reduce Your Debt
Of course, the idea of reducing debt is likely to appeal to many people. However, if you don’t take the time to plan accordingly, you may end up pulling cash from on pot, just to put in to another, without actually saving or cutting the costs you are paying out.
Speaking to a specialist financial advisor, knowledgeable friend, or even free services in the community such as the Citizens Advice Bureau can help you plan the best way to pool you resources in order to reduce debt.
The amount of debt you have accumulated will be the deciding factor in the best way to pay it off. If you have a small amount of debt that has been stuck over your head for a long time, racking up interest, you may consider finding a third provider to aid you in paying the debt off, whilst you use the rest of the cash to boost your retirement funds – of course a third party should only be introduced if they have no or smaller interest rates than the original debt.
On the other hand, if you have a large amount of debt, speaking to your lenders directly to arrange an affordable periodic payment will be your best option. All available resources should be used to lower debt, as this once these outgoings have been paid, you’ll be able to begin saving for luxuries you want in the future.
Planning ahead for later in life is of paramount importance, but this often only becomes real once we hit our 40’s. If you have a repayment mortgage, then the term to repay your mortgage should coincide with the date of your retirement. If these dates do not match up, you may want to consider over paying or changing the payment term.
If you have taken out an interest only mortgage, then it will be important to ensure you have a suitable payment plan in place so that you are not left with a large pay out one retirement comes around.
- What are Your Insurance Needs?
Your 40’s is a great time to re-evaluate your needs for insurance. Your individual circumstances will change throughout your life, but your 40’s is a great time to take stock of the cover you have, and how much you are paying for it.
Individuals with a long-term partner or children often consider setting up life insurance that will pay off the mortgage and provide extra money to maintain a certain standard of living after you pass away.
Just like any other type of cover, life insurance quotes will vary, so comparing the market, before you settle on one type of agreement is essential.
By your 40’s, you are likely to have much more disposable income than when you began your career, and typically would have already set up a general savings or ISA account. If you haven’t yet set up any form of savings account, the time to do it is now!
At 40, you are likely to still have a good few years to give your retirement funds a boost. However, when looking at your savings you should consider: if you could live on the sum of money you already have saved and how long for? What the estimated sum will be in 20 years’ time (or when you plan to retire)? And how much you could reasonably deposit to get yourself in to a comfortable position by retirement age.
- Your Overall Wellbeing
When you hit your 40’s, you are likely to have worked in your sector for a number of years. Your 40’s is the time to re-evaluate what you want from your career. Your work to life balance is of paramount importance at any stage of your life, but once you hit 40, it is time reconsider your priorities and where you would want to be in your career by the time you retire.
Mapping out how long it will take you to achieve certain work accreditations, positions and salaries before you retire, will give you a focus, and also help you decide whether to take a new career path, or continue on your current trajectory. At 40, depending on your financial position, you may even consider taking a step back from your career, and focusing on other aspects of life that are important to you. The first step in figuring out your wants and needs is to create a plan.
When it comes to your overall well-being, you may also want to consider personal aspirations. Whether you want to travel to all seven continents, change you style or get married, by setting yourself realistic targets, such as going on holiday, getting a new hair cut or going on a date, you can feel a sense of accomplishment and work steadily towards your larger life goals.
Tyler Horton is a content executive for: Tollers who specialies in Personal Injury Claims and Contesting Probate. As a hardcore thinker. Food expert. Amateur pop culture fanatic. Devoted web specialist. Professional creator. Tyler Horton describes himself as a problem solver and general knowledge mastermind.