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Finances in the Forties

6th May 2019
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24th April 2019
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The forties ideally are the time for peak earnings and people are halfway through entering the work force and traditional retirement age. Making solid investments and saving for your retirement should be the cue in your forties.

A healthy financial lifestyle is something one should have cultivated in their younger years. It is not too late to begin in ones forties. However, one should bear in mind that time is not on ones side.

You may have already made a financial plan for the future. If so, now is a good time to review it and adjust course if necessary. If you haven’t yet made a plan, it’s not too late to get started but you have to act fast.

Set aside some time to think about your financial situation and long-term goals. If you’re married or in a relationship, it’s best to include your spouse or partner in identifying your financial goals.

Consider the facts: How much are you making? How much do you spend? How much are you setting aside for savings, investments, and retirement? What will you need in the next five, 10, or 20 years? Work these factors into your short- and long-term financial goals.
Have an emergency fund that cushions you against for three, six to one year in the case of great financial setback like job loss, health issues, etc.

In the forties one should now work at reducing their debt as opposed to growing it.

Save aggressively for retirement. Know how much money you need to live comfortably in your old age. How do you plan to spend your old age? – Think and plan for it now. Bear in mind also that as we grow older, our health may deteriorate and more money needed to cater for health needs.

Make investments not only for yourself but also for your family e.g. education policies and plans.

Estate plan and writing of your will.
In it highlight who gets your money, your property and your possessions when you pass on. Who will be guardian to your children? In your will highlight power of attorney in case you are incapacitated by health or finances. Writing of wills is still a taboo topic in the Kenyan culture as one is presumed to invite death, yet the worst thing that you could possibly do for your dependents is to leave them financially insecure or all that you have worked for go down the drain and into the wrong hands.

Have life insurance that could cushion your dependents (household expenses, education, and funeral expenses).

Invest in health insurance.

Grow passive sources of income. Passive sources of income are those that you do not actively work to get money from e.g. rental income, gains made in stocks, dividends, etc.

Talk to financial and investment advisors in the market.

Maximize on benefits that you receive from your employer.

Own a house.

Can you think of other financial tips that we may have forgotten to write about?

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