Your 40s can be the highest earning years of your life and could also be the years in which your earnings peak.
This makes this decade one of the most important when it comes to financial saving and planning.
Here are a few tips to get you thinking and started, but, as always, be sure to contact a Steel Valley Investment Group of Raymond James financial planner.
1. Get Serious About Your Emergency Fund: Ideally, you should have three to six months of your normal income in an account that’s safe and liquid. There’s no right or wrong answer on how much cash to have, but getting into that ballpark can better allow you to plan and deal with unexpected expenses.
2. Get Serious About Getting Rid of Debt: With more money coming in, it may be time to start taking care of some of that debt you may have let creep up. Get rid of high interest rate credit cards by paying them down.
3. Get Serious About Your Employee Benefits: In your 40s, you should be saving as much as your employee matches in your 401(k). Be sure to dive into your employee plan to find out how much you can contribute.
4. Get Serious About Insurance: Many people think that they are adequately insured, but with many people in their 40s having young children, it can turn out to be a disaster if they come to find they are not. Now is the time to meet with your insurance provider to make sure you’re properly insured.
Your 40s are a very important time in your financial life. Treat them as such.
Views expressed in this newsletter are the current opinion of the author, are not necessarily those of Raymond James, and are subject to change without notice.