Savings – the money that one has saved, especially through a bank or official scheme.
Midlife changes could get one to question one’s ability, life goals, create self- doubt and thoughts of death might also occur. Such concerns might manifest and would affect each individual in a different manner. Few people would have anxiety issues, few might slip into depression. People resort to splurging money on expensive shoes, cars, jewellery, clothes. If a person faces financial instability during midlife, this condition could worsen. There are cases where people get suicidal too.
There are people who face midlife crises head on and take a grip over their lives while some might just splurge without considering their financial health.
The midlife transition might affect you in many unpredictable ways. Before it takes control over your money, you could use the tips to save. (I am a post graduate in accountancy and also post graduate diploma holder in investment and financial analysis so you could use my suggestions)
Consult a professional:
Always consult a financial manager to help you maximize your savings. You can also talk to your bank branch manager to help you with your finances. Your bank can advise you on investment schemes which could help keep your income organized for any emergencies. The right mix of investment one which gives you long-term security as well liquidity (easy availability of cash) is preferred and only a professional can guide you to strike the right balance.
Take help of a level-headed person:
While going through midlife, we might not be in a capacity to always think rationally. In such cases, when it comes to financial planning, there may be a situation when we might take incorrect decisions. Thus, it is better to take help of a person who is trustworthy and wise. One whose guidance you can take before making any purchases. This person could be your friend or your spouse also. Always take an opinion so that you know whether the purchase is made due to a need or is just an impulse decision.
Start small and start early:
You have to be better prepared. Always plan in advance. Do not wait for financial instability to hit you. Rather start saving early in small amounts so when midlife approaches you have a substantial amount saved. If you are in a habit of saving so when midlife arrives, you will not need to make an effort to save. E.g. If you have invested in a retirement or pension plan early on, you are already saving for the future.
Teach your children to save:
Teach your children financial planning. Yes, that is one of the best things to do in midlife. Your children are watching you as you spend and as you save too. You have to be a perfect role model for your child when it comes to personal finance. In case of financial instability make efforts to improve your situation.
You could involve them in the financial decision making of the household. You can always explain them in the language they understand and can comprehend. For example, you can take them along while grocery shopping and let them make a choice from the options available for the same product. Talk to them about monthly budget, share the budget with them which would help them in making their decisions. Slowly they imbibe a habit to save.
Review your finances every month:
Every month, take time out to review your finances. Check if you have made all the credit card payments on time to avoid late payment fees. Check your debt situation and the investment portfolio regularly.
Get your life insurance:
Recently I watched an ad on tv. This advertisement said, everyone takes insurance for the car but many people think before investing in a life insurance plan. Is your car life more important than yours?
Rightly said, isn’t it?
You would want financial stability for your family always. We need to help our family whether hard times when we are gone. Money should be the last thing on mind for a grieving family.
This quote sums it up well.
“Hope for the best, plan for the worst!”