Life begins at 40, so they say. When you reach this age, you’re expected to have won a few races and be financially savvy. Forty is when you’re 18 and have 22 years of experience, after all. However, this is also likely the time your life’s complications are starting to pull you down, and your money problems are at an all-time high. Here, we’ve compiled the most common financial pitfalls that you should work hard on evading before you get to the old age of youth.
1. Living too much in the moment. Two decades of hard work surely means you should have something to show for it, right? A high-paying job calls for a fancy ride, a nice house, grand vacations, an expensive hobby, and expensive liquor to celebrate it all. But don’t forget that you also need to set aside some of your earnings for your kids’ educational plan, and everybody else’s health and life insurance (see: Why Filipinos Should Put More Premium On Insurance). Now, how about your own retirement fund (see: Planning Your Retirement: Is It Something You Should Really Look Forward To?), and maybe a few lucrative investments?
2. Getting overly fancy home upgrades. By this time, you’re probably thinking of moving to a bigger, swankier house, or doing some home remodeling fit for interior design magazines. Nothing wrong with that. But let’s not forget that doing a grand overhaul of your house won’t actually increase its value, and moving to a more expensive place might put your finances in peril especially that you’re just around two decades shy of retirement.
3. Not future-proofing yourself. You’re not only getting older; you’re also getting old. This is when you have to look after your kids, your parents, and your better half all at the same time. Juggling career, family, and finances can take a serious toll on your health. It’s always a good idea to commit to a healthy lifestyle: Eat good food, exercise regularly, take up a sport, and drop whatever vices you have. Seriously now.
4. Being too complacent. When you were young, you climbed the career ladder rather quickly. But as you age, you find that the hunger for success is slowly being taken over by your desire for stability and comfort. What’s there to prove when you’ve already “earned” it anyway, right? Wrong. It would be nice if you could take a leap of faith and make a life-changing career move. Or why not start your own business? Colonel Harland David Sanders started KFC when he was 65! See, it’s never too late. Remember that when it comes to securing your future, the best time to start is always today.