MAXIMISE YOUR MONEY
5-DAY CHALLENGE
SORTED MONEY MONTH
1 – 31 AUGUST 2023
Maximise your money in your 40s: 14 – 18 August
Day 1: Plan for your long-term financial goals
As you reach your highest earning potential you want to optimise your financial resources and start thinking about your retirement plan.
Challenge yourself to plan for your future financial well-being with this top tip from expert financial advisers Vanessa Belton:
In your forties, it’s essential to define your long-term financial goals, such as paying off your mortgage, starting a business, funding your children’s education or increasing your retirement contributions. Break down these goals into smaller, actionable steps and develop a plan to achieve them. Review and adjust your financial goals as needed.
Develop a comprehensive budget
Track your spending diligently and identify areas where you can cut back or save. By living within your means and allocating funds wisely, you can optimize your financial resources.
Build an emergency fund
Safeguard against unexpected expenses or income disruptions with a robust emergency fund. Aim to save at least three to six months’ worth of living expenses in a separate, easily accessible account. This fund will provide peace of mind and a financial safety net for unexpected expenses or job loss.
Review your insurance policies
Re-evaluate your insurance coverage, including health insurance, life insurance and disability insurance, to ensure they align with your changing needs and financial responsibilities. Focus on health and consider long-term care insurance to protect your assets and alleviate potential burdens on your family in the future.
Review your estate plan
Ensure your estate plan, including wills, trusts, and beneficiaries, reflects your current wishes and circumstances. Update it periodically to account for any life changes.
Prioritise retirement planning
Planning for your retirement becomes even more critical in your forties. Assess your retirement savings and make adjustments, if possible, to maximize your contributions. Consider working with a financial adviser to determine the ideal retirement savings goal and develop a comprehensive retirement plan.
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