From 20 to 30 years old, you develop the correct financial habits and lay the foundations of their financial well-being. After 30, your life changes, you get family and children, you build your career. After 40 years, your life also changes: your children grow older, parents age and require care. In addition, you no longer have a ton of free time at this age. However, 40 years old is the age when you have many opportunities to save money and take care of your family before you start thinking about your own retirement.
As your family grows, your apartment may not be a good option. You probably want to move to another area, closer to a good school, or buy an apartment that will be larger, so that all family members are comfortable.
However, such options may require a large investment, a higher interest rate and higher mortgage payments. In addition, do not forget about real estate taxes, as well as the cost of monthly expenses for the maintenance of the apartment and payment of utility services.
No doubts, after you have spent many years in a rented apartment, you want to buy an apartment bigger and more spacious. However, you should calculate everything and measure your possibilities with the real situation in the real estate market.
Of course, you can try to match the environment and buy some things for your child just because all your friends have bought it. Tutoring, travel, branded clothing, sports equipment and elite sections, summer camps – the list is endless!
It is difficult to refuse a child, and this is not only because you love your children, but also because you do not want to look bad in the eyes of others, and very often parents buy unnecessary things simply from the desire to conform to the opinions of others.
This time is great for not only spending money mindlessly on your children, but starting to save money, and also teach them how to spend less on their children.
Many parents consider it their duty to educate their children at any cost, therefore they save on themselves and do not save for retirement.
Nevertheless, many experts believe that this is the wrong strategy, and it is important not only to educate children but to save money so that retirement is not too painful in terms of finances.
In addition, experts from Montgomery County, Ohio, believe that you can take a loan to pay for education, and then, after graduating from university, children will be able to pay it, while no one will give you a loan to retire.
Experts also believe that the biggest gift you can give to your children is parents who will not need anything and will not become a burden for their children even after retirement.
If you started saving money at the age of 22, you can have a quite good capital by the age of 40.
This money can be used as capital for a rainy day. You may suddenly lose your health or work, having one mortgage loan, credit for a car, three children and elderly parents who need huge sums for medicines every month!
For such cases, it is worth having savings that will allow you to hold on for at least some time while you are looking for a new job or recovering your health.
If you have loans, you can lower the loan rate due to your credit rating.
The larger your family, the greater the expenses, so it would be wise to improve your loan rate if you have a good credit rating.
See refinancing programs offered by your bank. Perhaps this will help reduce the monthly payments on loans.
Undoubtedly, none of us think about anything bad. However, we cannot know in advance what awaits us in the future, and we will do a great favor to our family if we settle our affairs.
First of all, it is necessary to resolve all the problems related to real estate, to designate the heir, if you so desire.
In addition, it would be great to pay off small loans, so as not to leave behind a lot of unpaid debts.
Sad statistics suggest that many families face divorce and even many years of marriage often do not save them.
Divorce can be a very stressful event, not only from a psychological point of view, but also from a financial point of view, especially for women.
Therefore, experts recommend that you think over this point in advance. First, both spouses must participate in family financial affairs and financial planning.
Secondly, it is necessary to have different accounts and different sources of income with the spouses in order to save their own income in case of divorce.
Talking to parents about finances is as important as making a will for your children. When you lose your parents (unfortunately, this moment sometime inevitably comes), you should be aware of the current financial situation of the parents in order to be able to orient in time.
In addition, older people are often the most financially vulnerable because they do not have the ability to plan their finances and use modern tools.
Sometimes parents tell their children about their financial problems too late, and solving them is already quite difficult. Therefore, frankness and honesty in this matter will save nerves and strength not only for your parents but also for you.
Tags: Business, financial