Making financial goals early in life will help your grow your money faster. It will also help you to create a habit of saving money. Set some Financial Milestones/ Financial Goals now, and get started right away. Whether you’re saving for a down payment of house or for retirement setting financial goals early will help grow your money faster. So, set your financial goals now and start working now on wards to achieve them. Take help from the financial advisers if needed. And try to invest your money so that it can grow with the time as saving is not enough to fulfil all your future needs.
It’s very important to have goals in your life but your financial goals should always depend on your age, income and lifestyle. Start with short term goals in the beginning, achieve them efficiently. As our aspirations change along with the passing time, so should our goals too. After the accomplishment of smaller goals move forward towards the bigger goals. Work in a proactive way to achieve them. Trust me this will help you to lead your future life in a better and efficient way. In this article we are going to discuss about Financial Goals that you should reach before Turning 50.
Paying off all Your Debt
By this age when you are about to enter in your 50’s, many of you might have taken different kinds of loans, such as – education loan, car loan, Personal Loan, credit card debt or it can be any other. But with the passing time responsibilities also grow and aspirations also change. Hence, it’s important to clear all these kind of debt by this age, so that you can focus on other aspirations and responsibilities which are needed that time. Being debt free gives you a mental peace too which will help you to enjoy your life.
Increase Your Retirement Contribution
60 is the official age for retirement and by the time you turn 50 you have only 10 years left for your retirement. By this age people generally have a decent amount of salary as compared to that of your 30’s and 40’s. So, one should increase his/ her contribution towards retirement. Suppose by the age when you were 30 your salary was 50 thousand and your contribution towards your retirement was 5 thousand. Now you are 50 and your salary is 1 lakh per month so now you should be 20 thousand. By doing this it will add on to your saving account for retirement. And this money which you are saving now will help you to live a better and peaceful life after retirement.
Get Long term Care Policies
Many of us don’t think that they need a long term policy care but the fact is future is unpredictable and anything can happen to anyone at any time. So, it’s always better to be protected by an insurance which cover these kind of uncertainty health wise and life wise too. With the passing age you become more vulnerable to different kind of diseases and health issues. Hence with your age your policy premium also increases. So, before turning 50’s to have a long term care policy is a must to be done part. It will cover your future and will provide you tax benefits too.
Paying for Your Child’s Education
Planning saving for your child’s education is one of the most important thing to be done by the age you reach 40’s. By the time you turn 50 your children must reach college and you must have proper fund for their education. Start saving for your child’s education from your 40’s itself. Education is the basic and most important building block of one’s future, and can’t afford to spoil your child’s future only because you lack financially. So it’s best to start planning early and open a separate savings account for your child’s education.
Some Major Investment for Life after Retirement
Investment is the best way to grow your money with time. As we all know, after retirement our income source gets limited and the amount is also decreased. Hence to live a better life after retirement, it’s important to have enough of money. And savings is not at all enough for the life after retirement.
Investing in mutual funds, Stock market, property, shares, equity etc. are the best possible investments options which can give you much more than which you have invested in past.
These investments will provide you time to time money and never let you run out of money. For the worst case scenario you will have property which you can sell and get money which will be definitely more than how much you invested in purchasing it.
Paying Off Your Mortgage Loan
Similar as that of student loan debts, it’s easy to get comfortable with the idea that you have to pay your home mortgage loan for the rest of your life. Some people while paying for a longer tenure loan assumes that they the getting only that much salary which they are left after paying the mortgage loan EMI. But this is not the solution, the sooner you get it paid off, the easier your life will be. By paying it off early you will have extra money in hand which can be used for everything else.
Apart from this you should think beyond the basic notion of owning the house free and clear. The extra cash flow which will be available after paying off the mortgage can help you to pay and save for your children’s college education and to fund your retirement too. The sooner you get your mortgage paid off, the sooner you can take on these other financial goals.
To Have an Estate Plan in Place
One should at least have a legally executed will that will clearly spell out the distribution of assets and property you have. This is also important for your dependents. Life is unpredictable and hence it’s better to have a will. Here, Once again adequate life insurance becomes important. It provides an extra layer of support to your loved ones that they will need in case of your death.
And if you have a high-net-worth property or one that will be created because of a large amount of life insurance, you should also look into your estate plans. Your asset should be divided in such a way to your family so that there can be no disputes between your loved ones.