6 must things to have by 40
Sourced Rappler | MoneyMax.ph | June 12th 2014
Nearing 40 and have nothing yet to speak of? Put your finances in order—now
Twenty-somethings have the time and strength but not enough money to buy and do things they want. Retirees can have enough money, but have the least time and strength.
Thus they say “life begins at 40.” It is true in a sense that most people should be stable, ideally, in all aspects of their life when they turn 40—the “prime” stage in a person’s life.
It is when you are 40 when you can do and be in your greatest potential—and at least, have already achieved the following:
When you reach 40, society expects you to be living on your own and having a family. If you get married at around 25, the first thing that you should consider before or right after your wedding is acquiring your own home. If you availed a home loan, you should be fully paid or nearing it by today.
2. Good credit score
Your life will be stressful when you are still paying debt at 40. Considering that as you age, more responsibilities are coming your way—wedding bills, birth, education, emergency fund, and so on. If you do not pay your debts early on, it will be harder for you to pay for it as you go along with your life.
3. Stable cash flow
By the time you’re 40, you should not be in a situation wherein you are clueless on where to get money for what. You should have the budget for everything and it is clear to you where will you get it. Proper financial management takes time and discipline to master, and by this time, you should have mastered it after years.
Following stable cash flow is your financial ability to invest. Investing is great because you let your money work for you instead of putting it in your bank, which only earns little in interest. Stocks, mutual fund, and bonds are some investment options available.
Life is unpredictable. You get sick, you get hospitalized, and you die. You do not want to stress yourself further on collecting money for such unfortunate incidents. If you are insured, you can save time and money while saving you from unnecessary stress.
6. Retirement fund
The misconception about retirement fund is that you should have it when you are old. But there is a difference when you want it that way or you really need to work as long as you have the strength to do so. If you build your retirement fund early, you will have that freedom to stop when you want to.
Do not wait until you are 40 before considering to prepare for these things. While you still have the time, strength, and opportunity to work on building the life you want for you and your loved ones, maximize what you have today so you will have a comfortable life after 40 and beyond. – Rappler.com