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Middle Age Survival Guide

If you’re approaching the middle of your life you may think you have a lot sorted out already in terms of your personal, professional and particularly financial life.

There are many things that can destabilize you in middle age however.  Divorce is the obvious one but you might also have kids moving out, your own ill health and the loss of a parent. All of these can put pressure not only on your relationships but on your finances to. Taking action now can protect your finances if the worst does happen.  Here are some top tips for surviving the middle ages.

Picture courtesy of the Daily Mail

Don’t let family throw you off the retirement track

When the kids move out you probably think that most of the responsibility and financial support for raising them is over and you can now really settle into saving for your retirement.  After all you probably only have another 15-20 years of employment from which to build your nest egg.  Don’t then be thrown off by the needs and demands of adult children.  Whilst it’s commendable if you can help them to buy their first house to do so, it shouldn’t be done at the expense of your financial future.  Unless you can really afford it, teach your adult children the valuable financial lesson of standing on their own two feet.

Protect your finances

Does consolidating your debt help your credit score? Should I use equity as collateral to reduce debt? Your 40s is the perfect time to sort out any niggling debt problems and strengthen your your credit score so that you have more options as you move towards retirement.

Becoming debt free also prepares you for anything life may have yet in store. Divorce, ill health and unemployment are all common challenges in midlife and can have a huge impact on the health of your finances. So don’t wait until the worst happens, sort out debt now.

Make saving a priority

According to the experts by the time we are in our 40s we should be putting away 10% of our income each month in order to be more resilient to any changes in our situation. This can be put into a savings account or programme or used to invest. Just as it is important we save towards our retirement saving should become a good financial habit so that we can face whatever life throws  at us.

Reduce your responsibility

Once your kids have flown the nest you may find your home is an awfully big place for just the two of you.  Downsizing is a smart choice not only to reduce or eliminate mortgage debt but as a way of reducing overheads so that you can put more effort into investing in your future.  

Work with the professionals

If you really want to improve your finances into old age why not enlist the services of a financial advisor, finance coach or debt management consultant. The experts can provide a range of ideas to protect and grow your income that you may never have thought of. They can help you with everything from investment planning, savings to how to recover from an attack on your financial security. You can then feel safe in the knowledge that you have your finances covered.