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Nobody likes to face up to the fact that they’re getting older, but it happens to all of us. At some point, it’s time to get real and admit that you’re not 20 anymore. As you reach middle age, it’s important that you take a look at your finances and start preparing them for later life. If you don’t do it now, you’re going to struggle later on when you come to retire and you won’t be able to enjoy your golden years without worrying about money issues. With that in mind, these are some of the big financial goals that you should be aiming to meet in middle age.
Have An Emergency Fund
When you’re younger and you’re not earning that much, it’s hard to keep an emergency fund. Even if you have the best intentions, the money just isn’t there. But now that you’re a bit older and you’re hopefully earning more money, you should be putting money aside every month into your emergency fund. When you’re trying to save for retirement or put money away for the family, any unexpected expenses can really disrupt things. Say, for example, your car suddenly breaks down and you need to get it repaired. If you don’t have a separate emergency fund, that money is going to come straight out of your savings or, even worse, from credit cards. But if you put a small amount aside each month into an emergency account, you’ll have the money there to cover those unexpected costs without disrupting your savings plan.
Write A Will
Writing a will can be quite a difficult process because nobody likes to be faced with their own morality, but it’s important that you do it as soon as possible. Even if you’re in good health, there’s always the chance that you’ll get sick or have an accident. You need a will to protect your family if the worst does happen. The first thing that you need to do is decide on a trustee who will handle your estate after you’re gone. A lot of people don’t really know how to pick somebody so it’s best to seek the advice of a professional company like the Philips Trust who can explain the role of a trustee to you and give you some guidance on which family member to pick. Then, you need to decide how you’re going to split up your estate. It can be very difficult for your family if you pass away and you don’t have a will in place.
Pay Down Debt
Debt is such a huge burden and it’s one of the biggest causes of the stress. If you’re saddled with debt, you’re paying massive amounts of interest every month and that’s money that could be going toward your retirement savings or even just on luxuries for yourself. If you can pay down that debt as soon as possible, you’ll find it a lot easier to put money away for retirement and you can enjoy a better quality of life.
If you don’t meet these financial goals during middle age, you’re going to struggle when you reach retirement.
This is a collaborative post.