Financial Goals. I think every person should have them. As much as we say that money can’t buy you love or happiness… it can, most times, bring you a sense of stability and calm. Especially if you’ve reached the goals in life before you’re too old to enjoy your successes. Below is an article that shares a few of tips on what we should plan to achieve financially before the age of 50. I’m doing 4 of them so far and working on the 5th… where do YOU rank?
The Top 5 Financial Goals To Have By The Time You Are 50
Whoever said money talks was not wrong. It’s ok to not have money when you are still young because you can easily adapt to the situation. But the story takes a different turn when you are 50 and above. At the age of 50, you are already experiencing mid life crisis issues which makes it even harder to cope with financial challenges. You should therefore put your finances in order when you are still youthful because there is not much you can do when you turn 50. Below is a list of goals that you should work on to guarantee a stress free life at 50.
Have Several Channels of Money Generation
When you are young, you can switch jobs as you wish because you are still very productive. But when age catches up with you, employers will also start avoiding you because they prefer to work with fresh blood. At 50 years, you should start spending the money that you managed to save at the onset of your career. If you wait until it’s too late, your life will be miserable because you will not be able to sustain yourself. Besides that, you should have several streams of income to be able to pay your bills. In fact, you should look for ways of making your money work for you. You should consider investing in commercial real estate, mutual funds and treasury bonds among other investment options.
Stock Money for a Rainy Day
It’s important you set money aside for emergencies. This is because unwanted circumstances come without a warning. When you have an emergency kitty on the side, you can offset bills that result from emergencies without having to sell some of your assets. Besides that, such money gives you peace of mind because you know you already have enough money to cater for such unwanted expenses. Moreover, such money can keep you going in case you are fired by your employer before you reach your retirement age. Mortgage Calculators has an easy way to help set up a savings plan on their site. It’s simple to use and very helpful!
Pay All Debts
Whether you have a good loan or a bad one, you just have to clear it before you turn 50. If you allow the debts to remain unpaid for many years, they will become a stumbling block in your 50s. At such an age, you should be able to commit to managing your investments. You can easily clear your debts by reducing your expenses, such as credit card debt, with a debt calculator . In fact, you should spend below your earnings to ensure that you can afford to pay your debt in installments. If you will still be paying for your mortgage at 50, you would rather sell such a home and buy another that’s more affordable instead of remaining in bondage.
Prepare for Early Retirement
Retirement should not find you off guard. It’s therefore advisable you start preparing for your exit early to ensure that you will have a smooth transition. Since retirement is inevitable, you should start saving for it in advance. Those who allow themselves to be caught pants down often demand for an extension of their tenure. Sometimes health issues can push you to retire early. Such a situation can spell doom if you have not been saving for your exit. The advantage of saving for retirement is that it gives a soft landing in case your career ends early. This is because you can use such money to start a business.
Buy a Home
At the age of 50, you should be having your own home. It’s very stressful not to have a roof over your head at such an age. You should therefore start saving for a home when there is still time. This will spare you from the agony of having to live in a rented apartment when age is already catching up with you. If you are already employed, you can apply for a mortgage loan. Those who are self employed can use IRA to build their savings.
As I stated in the beginning of this article, I am achieving the first 4 of these goals… the best one being Early Retirement! The amounts of my finances are not as big as I would like them to be, but I’m working on that factor. The only goal on this I don’t fully have is owning my own home, which I plan on getting done in the next 1-3 years, hopefully. Let;s chat… where do you land on this goal achievement list? Do you agree with the list or is it wrong or missing something? Leave your thoughts in the comment section below!