As you near the 40s, your responsibilities and priorities in life change from what you had in 30s as your parents are older, children’s education costs are growing, and your mortgage is still very much in existence. This is the right time to start accumulating your wealth for yourself and for the next generation. Let us see the ways in which you can build your wealth for a comfortable and fulfilling life after 20 years from now.
1. As you have realized by now the importance of financial planning, the trees of your foresight in the 30s have already started bearing fruits. Now is the time to scale up your vegetation of wealth to the next level. Not only your main priority should be to remain in a good state of well-being by adhering to suggested exercises for men and recommended diet chart for men but also to organize and optimize your financial affairs.
2. Start putting dates on your financial plans, as all plans should be measurable and accountable. Make a roadmap to achieve your objectives such as expanding the sources of income and learning new skills to broaden your talents that help you to elevate your current lifestyle.
3. You should include the yearly and monthly financial goals, budgeting, emergency funds, and cash flows for wealth-accumulation. An ideal strategy should include investments and wealth-preservation strategies such as life and health insurance for yourself and for your family.
4. The next thing you should do regularly is to review your plans and make adjustments according to the changing laws and the circumstances. Adopt few rules to make best use of money such as prepay your kid’s school fee if discounts are available, make extra mortgage repayments or just let this money sit in an offset account wherein you can have a cash reserve to draw on in the future, and invest in insurance bonds or in education bonds that can provide you the needed tax benefits. Bottom-line you should also start consolidating your debt by making extra repayments
5. If you are planning for next 20 or more than 25 years it is advised not to hold the money too conservatively, instead take unnecessary risk to achieve your objectives. You can use either your own cash flow (after tax savings) or by borrowing money to invest in a well-diversified opportunity that solely focuses on performance.