How To Build Financial Security Between Ages 40 and 60
Friday May. 20th, 2022
Building or enhancing financial security during middle-age is a lifestyle choice of paramount importance. Whether you're single or married, with or without children, you'll be making some of life's most critical decisions between your fortieth and sixtieth birthdays. For many who are nearing retirement, downsizing is the central area of concern. A huge number of working adults sell their homes when they're around 50 and do so in order to find a smaller place.
Other tactics for upping your fiscal stability include selling unneeded term insurance policies, for which you can get instant cash payouts. Before you retire, be sure to retire those high-interest credit cards that continually eat into savings. Liquidate assets that are earning no interest or just sitting around in the garage collecting dust. Finally, do a thorough revision of the monthly budget to see where you can pare down a few expensive items. Here's how to get started.
Millions of middle-aged adults start thinking about downsizing their living space after kids move out, or they just feel like they need a less costly lifestyle. Selling a house and buying a smaller, more efficient one is at the top of the list for many homeowners who are looking to save money. It's a wonderful and wise way to be a responsible person and build long-term financial security because mortgage payments are the single largest monthly expense for the vast majority of adults.
Sell Your Term Insurance Policy
Most people between 40 and 60 own insurance policies, many of which are term-type coverage. What many do not know is that they can sell term policies for cash through a process called a life settlement. There are companies that will help you to unload an unwanted policy and get instant cash you can use for any purpose you choose. Middle-aged adults often use the money to add to retirement accounts. Other reasons for selling a term life insurance policy include:
Revise the Monthly Budget
You won't need to hire an expert or put in long hours to revise your monthly budget. Set aside some time on a weekend afternoon and focus on combing through all the expense items line by line. You'll likely be surprised to discover at least two areas where you can do some slicing and dicing. Put discretionary spending, like meals out, fast food, and convenience store purchases under the microscope. Most working adults can afford to eliminate most, but not all, of those purchases. Allow yourself some restaurant meals each month as well as an occasional impulse buy at the service station. The goal is to become financially secure, not live like a monk.
Retire High-Interest Credit Cards
One of the biggest monetary drains for individuals of all ages is high-interest credit. If you have cards with higher-than-normal rates or balances, work to resolve the issue as quickly as possible. One way is to make a detailed two-year plan for paying all balances quickly and reaching zero owed and thereafter paying card balances off each month to avoid accumulating any interest.