5 Reasons that could motivate you to save in your 40s
If you are in your 40s, you have in all probability, saved quite some amount by now. Your financial goals weren’t exactly set till now, and that’s okay. But once you enter the 40s, your goals change along with your priorities and they become crystal clear. If you still need few motivators to reach your savings goal, here are some:
1) Preparing for Retirement:
Who doesn’t want to enjoy the golden years of retirement? And the best way to enjoy it is by having a financial plan in place. Even if you are entitled to receive a pension when you retire, it is still advisable to have other income options in hand. If you start saving according to your plans when you’re in your 40s, you surely will have a relaxed retirement to look forward to. Remember to weigh in inflation as a factor when you chalk out a retirement plan.
2) Aim to be Debt-free:
You may have a home loan or a car loan that you haven’t paid off yet. If you’re in your 40s, it is time to prioritize your finances with the aim of being debt-free. No one likes to be in a lot of debt, but at this age, it is even more important that you remain debt-free. Why so? Well, if a major chunk of your salary goes into paying EMIs, you end up saving a lot less for your retirement, for your future.
3) Manage your taxes:
As and when you age, your income gradually increases. As your income increases, the liability of paying higher taxes increases too. By managing your taxes, you can in a way optimise your income. Take advantage of the various tax saving schemes that are available these days. You can choose to invest your hard-earned money in various long-term or short-term investment schemes. The sooner you start managing your taxes, the more benefits will you reap!
4) Saving for College:
Many people who are in their 40s have kids. If you do too, then like every other parent, you too must be constantly worrying about your kid’s college fee. This can be one of the strongest motivators for you to save as much as you can. While saving for your kids should be a reason for you to save, don’t compromise on your retirement funds to do the same.
5) Be prepared for Medical Emergencies:
A lot of people do not address the issue of saving in case of medical emergencies. Thinking about these situations can be scary, but it’ll get scarier if you don’t have proper finances in place. No one plans for medical illnesses, but in case something goes wrong, having the necessary finances will definitely be helpful. Be it for yourself, for your better half or for your kids, make it a point to put some money aside for situations like these.
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