Generation X is classically defined as people born between the years 1965 and 1979. This means for the next five years, the last batch of Gen X’ers are going to turn 40. If life begins at 40, then it must be certain that making smart money moves should fold into that master plan. Whether you are woefully behind on student debt, just getting married, or you are now starting to make some serious money, here are four smart money moves to consider when you turn the age of 40.
- Admit Your Mistakes . . . They Are Natural
- Financial Mistakes- If you are spending like a drunken sailor making sure you are seeing all the best concerts and trying the fanciest restaurants, don’t beat yourself up. If you have piled up debt or lost money on a private investment deal, there is still time. Just be true to yourself on those mistakes so you don’t continue to make them.
- Personal Mistakes- Sure, you may have had a costly divorce or loaned money to someone in a relationship that turned sour. Even if you are paying child support, you can still build a plan for the next twenty years for your own success.
- Professional Mistakes- Perhaps you held on too long to a job or missed an opportunity for a promotion. Generating revenue will be one of the major keys to the next twenty years of your financial life. No matter what stage you are at, now is a great time to assess how you will grow your own top line revenue.
- Run The Retirement Number
- You Aren’t A Kid Anymore- I’ve seen all kinds of articles that say the normal retirement age may be at 70 or later because we are living longer. I say that the average Gen X’ers is half way burnt out already and wondering how they will work, and focus on the projects they want to do versus the ones that they have to do. It’s that notion if money were no object, what would you be doing with your life? My best professional guess is that more than half of you reading this would change jobs tomorrow if it weren’t for the money. This means you really need to figure out where you need to be financially to make that happen.
- Revisit Your Life Insurance
- Whatever You Think You Need, Boost It Up- The majority of 40 year olds way underestimate how much life insurance they need. Do you really think your family could make it on 1 million dollars for the rest of their lives?
- Your Health- You are still at the age where most of you can get yourself better rates on your life insurance. Just like a car, we all get wear and tear on our bodies. Make sure you get as much as you can while the going is still good.
- Make Sure Your Term Insurance Is Convertible- If you don’t buy a permanent life insurance policy, make sure your term insurance can be converted to permanent life insurance down the road. You don’t know what your health will be like at the age of 60 or 70.
- Choose Wisely
- At 40, you will start to have choices to make that can greatly impact your financial future. If you choose to do a 30 year refinance, realize that the mortgage might not get paid off until you are 70. If you are saving for your kids college education, make sure you don’t over save for them and under save for your retirement. Most importantly, make sure you don’t pile up debt. Debt will not only drag you down financially, but it can cripple you emotionally.
If life begins at 40, get it to begin the right way with these four smart financial moves and put yourself in a position to make work optional one day.
Go to www.oxygenfinancial.net to request a consultation with the leading experts for Generation X in the country.