- June 3, 2021
When you approach the big 4-0, it is easy to get discouraged about your finances. If you’re not quite where you want to be, here are some money moves you can make to get back on course.
1 - Know your worth
And get paid for it! If you’ve been with the company for a while, there’s a chance that your pay grade and/or your benefits are no longer competitive. Do your research and see what sort of benefit packages are being offered in your industry. Don’t be afraid to ask your employer for what you want. Make your case. Outline what you bring to the company and state a figure. And remember, it may not be all about a salary increase. There may be options for company shares, better retirement, or medical benefits.
2 - Protect your earning power
Knowing the industry standard for your salary is only one side of the coin. There are few industries that don’t benefit from continued education and training. With younger (and cheaper) talent entering the market each year, you should make sure you remain knowledgeable and competitive. See what continued learning opportunities exist in your field and if any are in areas that you think are important for your company or the job you want. Taking a short course is sometimes all you need.
3 - Bring retirement into focus
Leaving the workforce is no longer a distant dream. Your forties are prime time for a health check of your retirement plan. Start with finding how much you have saved and if you’re contributing enough to get to your retirement goal. If you aren’t making the maximum contribution to a company-sponsored plan, now is the time to make that adjustment. It might also be a good idea to supplement your company-sponsored plan with a personal pension plan. Speak to a professional to formulate a plan so you don’t have a rude awakening in the next 20 odd years.
4 - Check-in with loved ones
You may already be playing an important role in your parents’ financial life. Even if you are not, it’s still a good idea to find out how secure their financial future as this can impact your own financial plans. If they are not retired, do they have a pension? Do they have health or life insurance? Are they in debt? Do they own their home? These are not always easy conversations, but it may be worth a little discomfort to give you some peace of mind later.
5 - Grow your net worth
You may be well past the frivolous spending stage of your 20’s and the establishing savings stage of your 30’s. Now is the time that you make your money work for you. Look for investment opportunities that suit your risk tolerance and long-term financial goals. If you already have an investment property, mutual funds, and shares, reevaluate your investment portfolio to make sure you are maximizing your returns. Meeting with a professional financial advisor to discuss your current standing and goals can help with this.
Remember, 40 is not too late to begin making the right money moves. Even if you have had missteps in your 20s and 30s, now is a good time to get back on track and create the future you want.