To the good life: if you’ve reach your 40s, welcome to your prime.
If you conform to the mean, it’s likely that you’ve established something of a career, launched a family, have a weighty mortgage and wonder how the heck you’ll ever afford to retire.
Back here in the present, you’re like pondering how your solid income – and possibly that of your spouse – seems to last so little in the face of your expenses. What you need is a little advice on how to manage cash flows, something our featured author is ready to provide.
Everyone needs a budget plan. This bit of wisdom is something you should apply right out of the gate, when you get your first serious job after college. We know the truth, though, and it shouldn’t necessarily be cause for shame. The expenses get ahead of you and before you know it, you’re living hand to mouth with no consideration of a personal financial plan.
Maybe you need a helping hand. Our author recommends an app, available from YouNeedABudget.com. There’s nothing like a bit of carry-everywhere technology to make a practical task a bit more doable.
To protect your personal financial system from unexpected shocks, you must build up a substantial cash reserve – experts usually suggest enough to support three months of regular expenses, but we think twice that amount is a better goal. Open a special account and don’t touch the funds except in an emergency. If you have trouble coming up with the initial infusion, use a tax refund or other windfall to get started. This idea is simple in conception, tough to launch, but supremely comforting once established.
For more information, please read:
Financial Planning Priorities In Your 40s | Forbes