Expert Money Advice Everyone Needs Before 40

money advice

Money Advice to Live By…

People in their 40’s face many of the same decisions. Sending kids to college or getting ready to, dealing with the demands of a busy career and a busy family, preparing for retirement and thinking about how you will manage when that day arrives.

By making some right choices in your 30’s and 40’s preparing for major life changes like retirement doesn’t have to be a worry. We can see in the excerpt below by Dave Ramsey that making small changes with an end goal in mind can set anyone on the right path for a great financial future. Let’s take a look at his money advice for all of us looking at 40 and beyond.

Money Advice

Make minor adjustments to your budget, one at a time.

Soon, you’ll be saving more without sacrificing your lifestyle. If you’re ever going to win the battle with those everyday expenses that seem to eat up more and more of your paycheck each month, you’ve got to have an effective budget. Chadd Hoeft, an investing Endorsed Local Provider (ELP) in Omaha, NE, understands why people have hang-ups about budgeting. “They’re worried that they’re going to need to change their lifestyle so much that it affects how they live today,” he said. He recommends you start by examining your spending in just one category, like entertainment or eating out. “Then let’s say you don’t go out to eat one or two times as often as you did the month before,” Chadd suggests. “Start with that position, and use those dollars to contribute toward your future.” Using this step-by-step approach, you’ll be able to see how those small adjustments work in your favor without making a 180-degree change in your lifestyle, he said. “When people start keeping track of those things, they feel like they got a raise,” Justin Widick, an ELP from Omaha, explained. “They can start setting aside a significant amount—more than they thought they could before.
– via

Money Mistakes to Avoid

Knowing the common mistakes people in their 40’s make with their money can help you avoid the same pitfalls. Today we’ll look at 3 mistakes that are very common and can trip you up on your way to retirement. Getting the right kind of expert money advice and taking it can make all the difference in having financial freedom or juggling to try to make things work out. Here are just a few money mistakes to avoid.

Not Maintaining Enough Liquidity

A lack of access to cash in an emergency sends many Gen-X families to predatory payday lenders, Emmons said. “It should be a high priority to have enough cash reserves so that you don’t have to go to a high-cost lender or to sell off assets or pass up opportunities when they arise,” he said. If you don’t have an emergency fund by this point, you might need to make some aggressive moves to establish one. The short-lived sting will pay off big over the years.

Letting Your Emergency Fund Fall Behind Your Growth and Expenses

If you’ve had an emergency fund in place for years now, don’t pat yourself on the back too hard. Many people realize in their 40s that their emergency funds now fall woefully short of supporting their larger incomes and budgets. Whether your cash reserves have kept pace with your budget or not, when you’ve reached your 40s, it’s time to invest your emergency fund for maximum growth while keeping your funds liquid.

Getting Complacent About Carrying Consumer Debt

It’s easy to get too comfortable when you’re tucked into a good job and cozy home. Don’t get complacent about carrying consumer debt. “Not that everyone that has borrowed has trouble, but people who have trouble typically have borrowed,” Emmons said. Limit your exposure to debt, and don’t use a current position of strength to justify putting yourself in precarious position.
– via The Huffington Post

Do you have your financial house in order? Are you willing to take small steps today that will help you reach the goal of financial freedom?

Leave a Comment