It might be quite depressing for you when you are turning into the 40s.
You might have experienced the same situation when you reached your 40’s. But the situation was better than today. Then, you may wonder what has happened with you today when you reach 50’s?
A sense of discomfort and hesitation will cover your mind. You might feel that so many things have been left behind unattended. Some things may also remain undone. It must be due to the midlife crisis that comes with age.
So, before turning into 50 something, you should set up a few life goals and try to complete them asap. Setting up a target in your life is always fun for everyone. You can see yourself growing and it gives you some inner strength to carry on.
So, what are you waiting for? Roll up your sleeves and prepare the list of financial goals before 50.
1. No debt at all
Debt is dangerous for your finances. If you have debts (especially unsecured ones), it’ll be tough for you to save and invest money. Unfortunately, most of us have unsecured debts more than secured ones. You must take full control over your money so that you can pay off most of the big debts such as student loans or mortgage by the time you turn 50. Make sure you don’t have any other consumer debt.
Check out the list of bad debts:
- Credit card debts
- Payday loans
- Medical debts
- Store credit card bills
- Utility bills
- Personal loans
- Student loan debts
If you have any of these debt issues, you should try to get out of the situation as soon as possible.
You can’t consider a home mortgage as a bad debt. But it is also a big consumer debt. So, you should pay it through on-time monthly payments. Do not try to pay it off if it has a prepayment penalty.
2. Control your spending
Your kids might have gone out of school and staying away from home. So, you’ll have some spare time and more money in your pocket now. But be very careful, it is quite tempting to spend it over numerous things that you don’t need right now.
I am not telling you to start living a frugal life. Have fun but do not spoil your retirement goals. If you earn well at your 50s, that’s a good sign. It is high time to double your savings so that you can manage your expenses in retirement without any hassle.
Also, you may need to think about how you’ll rectify your spending habits so that you can reach your financial goals before 50.
3. Retirement planning
You might have spent half of your working life when you reach 45. You are just 21 years away from your retirement. So, set a concrete goal for your retirement savings. There is still time to save for retirement.
It is not possible to work until you die. You can’t ignore your health and other factors that’ll create issues with your work life. Apart from that, employers normally prefer young and cheaper employees as they are considered much more efficient and skillful.
To retire like a pro, you should start saving and investing from the very beginning of your career. Do not stop until you achieve financial independence. It’ll be amazing when you max out your 401k contributions every year till you retire.
4. Maintain health and hygiene
This is one of the most difficult life goals before 50. People reaching the age of 50 normally avoid healthy habits and exercises. But some have it together and are living a healthy lifestyle.
Stop overeating; it is one of the most common reasons that make us unhealthy.
If you want to lose weight and become healthy, you should prepare a solid meal plan. A proper diet enriched with protein, minerals, vitamins, calcium, and other essentials, can make your body and mind healthy and strong.
Quickly check out this list:
- Check your weight regularly and maintain it.
- Avoid junk food, soda, sugar, and high-fat diet.
- Eat a lot of fruits and vegetables throughout the week.
- Avoid drinking and smoking.
- Spend at least 30 mins every day for exercise. If possible, do cardio exercises every day.
- Sleep at least 8 hours a day.
- Minimize tea and coffee intake.
- Do a regular health check
I know it is not easy to maintain such things all the time. But you must maintain such habits to maintain good health and hygiene.
5. Update your will
About 55% of Americans ignore to have a will or other estate plan to organize their assets. If you don’t have one, a probate court will decide how to distribute your assets. A will is required if you have an heir for your assets. You and your spouse should have a separate will.
You must decide what will happen with your assets and liabilities after your death. You can appoint an executor to follow your directions and execute the will. You may update your will at any time you want.
6. Review and adjust insurance coverage
You should review and update insurance coverage from time to time. Try to opt for cheaper term insurance. These are low-fee index funds, a cheaper way to save for your retirement.
You may also go for disability insurance and full life insurance to cover your family and yourself.
If possible, check your home and auto insurance limits, too. You may consult a professional insurance broker who can review the needs of your health insurance, and suggest a proper option.
7. Maintain stability in family life
It will be easier to complete your life goals before 50 if you have a supportive spouse alongside. Even your kids can play a great role in helping you to complete life goals.
If you’re single with no kids, then you can also retire early if you like.
8. Build a solid emergency fund
Building an emergency fund can take away a lot of stress as you will always have a decent reserve to fight against money crisis such as a job loss or a large medical expense. An emergency fund is a strong money management tool which provides you with money to fulfill other life goals too.
These are the top life goals before 50, as per my point of view. Whatever you do, make sure you do it with full confidence.
If you can suggest some more important life goals, please provide suggestions in the below-given comment section.