air jordan

If you’re hitting 40 soon, the above image may take you back to the playground and the must have shoes of the day! But how does one of the greatest basketball shoes made, fit with financial planning? It doesn’t really, other than to highlight the fact that if you’re in this age group, you should be thinking about your future retirement more seriously, seriously! Every money decision you make can have a huge impact on your retirement plans. Take a closer look at your financial position and see where you’re heading next.

It helps if you have already started taking action by securing your financial future. Take a look below at some of the things you should be doing already and if you’re not, take action today.

  1. Eliminating debts – Your 40s should be when you’re already eliminating debts you’ve accumulated in your 20s and 30s. If you still haven’t, don’t worry — it’s not too late. Usually for most Aussies, it’s a matter of allocating your surplus income more effectively or even reviewing your existing structure or interest rate, but the most important thing is to make sure you’re reducing your overall interest cost, rather than continuing to contribute the record profits generated by the banks! If you’re not 100% on how to go about it, feel free to ask us what the best option is for you.
  2. Maximising your savings – Have you reached your savings goals yet? You should have enough financial cushion by now or at least be close to hitting your savings target. You might need to cut back and let go of a few luxuries if you’re serious about securing your financial future. Another consideration, even though it may sound boring, is turning greater focus to superannuation. Doing so, could pay major dividends for your future retirement.
  3. Avoiding lifestyle inflation – Now that you’re earning more compared to your 20s and 30s, it’s easy to increase your spending needlessly as well. This lifestyle inflation trap is what prevents most from saving and investing their money. Create a budget plan to accommodate your needs and make sure to put some aside for leisure activities like family vacations.
  4. Reviewing your retirement plan – Lastly, once you’ve hit your 40s, it’s easy for most people to panic at the first sign of market volatility. To avoid making a potentially disastrous mistake, review your financial strategies often. After all once you’re on track it’s important to continually adjust your plan to reflect both changes in legislation as well as your own circumstances ensuring you take advantage of all the twists and turns life takes.

 Do you still have questions regarding financial management in your 40s? Get in contact and let’s see how we can help you.

This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Liability limited by a scheme approved under professional standards legislation