Oh Finance! It’s 2018 and you may feel like you are not where you should be at your age. As April is “tax” month, we are going to do a series of blog posts on rocking your finances with tips you can implement today. First we will start off with 5 finance boss moves you should be making in your 40s.
Everyone situation is different. These tips are not rules but merely suggestions to help you overcome any challenges you may be experiencing. I know in my 20s I felt invincible. I could do no wrong. New at getting credit but horrible about keeping up with it and managing this new found financial freedom. The next phase to hit was “life” – bills, career, family, and more responsibilities and opportunities. I was one of those people who listened to everyone else in what I should be doing, how I should be doing it and being made to feel inferior because I did not meet whatever standard had been placed upon women my age. You know the old “at your age, you should……”. One day, I stopped. I stopped listening others on what I should be doing and decided it was okay that I hadn’t brought my first property before I was 40, that I hadn’t started a business before I was 40, that I didn’t have this complicated tax strategy implemented before I was 40, and on and on. It was okay that I was doing it on my time, my terms, and with my own methods. The list below are just a few of the things I found to be helpful to me. Follow the finance tip or two listed or even create your own map. The story is make your finance boss moves and move into the years to come feeling happy and accomplished.
Finance tip #1: Pay off high interest debt
This is one of the most important things you can do in your 40s. Many of us have credit cards. Many survive the monthly hurricane of bills on credit cards only to go into month after month creating yet a higher credit utilization and racking up interest. Go ahead pay off the high interest debt like a boss. Do not let it hold you back any longer. Get ride of high interest debt and build your nest egg!
Finance tip #2: Start a business
I can’t express this enough. One of the best finance tips I ever received was to start a side business. It can be pursuing one of your passions or hobbies as a business. Its a boss move you don’t want to miss. Sure, the money may be small at first. Think about it….today it pays for your daily Starbucks, tomorrow it pays your gas for the week, and in the next few months you are putting away $500, $1000 a month into a savings. This is a good way to build a nest egg and not to mention the deductibility of certain expenses. Build your nest egg!
Finance tip #3: Increase contributions to 401k or similar retirement plan
This is a no brainer. If its offered by your employer, sign up and either set it up for automatic increases or be sure to change your contributions as your situation permits. Stack away the money and savings for your future. The limits change each year so be sure to stay abreast. If your employer matches your contribution, take advantage of the free money and be sure your contributions are at or above the percentage the employer contributes. Build your nest egg!
Finance tip #4: Increase income
This finance tip piggybacks on tip #2. The goal is to increase your income. you can have a regular job and many other streams of income. The goal is to increase increase increase! If you feel your job does not pay you enough and you are worth more, then approach your employer and discuss the contributions you make and see if she/he is willing to give you a raise. You can always get a feel for job market if you are truly wanting more. Its all about you and we want you to increase your finances. Build your nest egg!
Finance tip #5: Start tax planning for future
This is a major finance tip and one to be done all the time. Remember tax planning starts at the beginning of each year and not at the end of the year. This could be costing you if you don’t subscribe to this train of thought. Start planning for your future to minimize your liability. Build your nest egg not your tax liability!
Lastly, take your time. You are on no ones time table but your own. Be sure to make your own financial moves rock and build you nest egg for the future. Be sure to check back every Monday for a new post on finances this month.