How to Build Wealth in Your 40s From a Financial Goal Coach
Don't panic if you've reached your 40s and you still haven't set any financial goals for yourself. Yes, it's a little late. However, you may still have 20 years or more to work and save the money you need to achieve your goals and dreams.
You can't worry about what you did or didn't do in your 20s and 30s. The time to start building wealth is now. We're going to talk about how you can start setting up your goals and then developing some strategies to meet them. You're still in the prime of your life, and there is no reason that you can't build yourself a beautiful financial future.
Start With a Vision
The first thing you have to do if you want to start setting financial goals by age is to visual success. Where do you want to be when you're 50? How much wealth do you want to have by the time 60 rolls around? What would you like your retirement fund to look like? Take some time and truly think about those questions because you'll need to answer them if you want to succeed. Attitude is the biggest part of success. You can do anything you set your mind to if you believe it can come true. That rings true for any financial goals you want to set.
Start Eliminating Debt
If you're in your 40s, you probably have plenty of debt to get rid of. Tackling your debt is a great goal to have in your 40s because it will free your earnings up so that you can achieve other goals with it. Eliminating your debt can also make your profile more favorable to potential lenders. It will be easier for you to get something like a new house or car if you boost your score by getting rid of your debt. You should start working on a debt elimination plan right away.
You can choose from a variety of strategies to rid yourself of your debt. You could try doubling or tripling up on your payments for a while. You could negotiate with your creditors for debt settlement deals. Alternatively, you could go the route of obtaining your credit reports and "cleaning them up." Question all questionable items and dispute all items that you believe should not be on your report. Every little thing you do in favor of salvaging or improving your credit score will help.
Get Serious About Saving Money
As we mentioned before, saving money is 80 percent attitude and 20 percent action. You have to get your mind in the mode to save money at all costs. Now, that doesn't mean that you have to break yourself or deprive yourself of living a fun life. What it means is that you will be 100 percent committed to saving money exactly the way you plan it. You won't let anything get in the way of that process. That's why it's important to devise a reasonable plan. Don't make your savings goals too high. Make them affordable so that you can function and enjoy some of the money you work for, too.
Decide on a Savings Amount
You should start saving money as quickly as possible. Every week counts toward a bright future once you become older. What you'll need to do is break down your income and expenses and then develop a figure that you want to put into your savings funds. You should keep at least three separate savings funds and route the month to your various funds each pay cycle. One fund should be for a savings account that you will not touch. This is your retirement fund. You don't necessarily have to put it into a savings account, although a high-yield account isn't a bad idea. However, you might fair better if you open an IRA or 401k and put it there. You can earn extra money if you can grab a 401k plan with your current employer. At any rate, this account is one that you will not touch until you reach the retirement age.
The Second Savings Account
The second savings account will be for a long-term goal, such as the down payment on a house or a new car that you'd like to buy. You'll separate this account from your retirement account because you're going to tap into it when you're finished saving.
The Third Savings Account Purpose
Your third savings account will be for emergencies. Here, you'll store money that will go toward your security blanket. You won't touch this money unless an emergency arises. Your car might break down one day, or you might have a medical emergency. You'll want to have cash in a savings account that you can use to resolve these issues. You won't want to have to spend your personal money or charge your credit cards. The logic behind the three separate bank accounts is that they're all for different purposes in your life's plan.
The rest of the money you have left after you put funds away into this savings account will be for your personal use and bills. Make sure that you give yourself a reasonable allowance so that the task of saving money won't become cumbersome or burdensome for you.
If you decided to start saving money, we can help you to find the best saving account options. Choose the deposit amount, and you may get offers that suit your finance best.
Start Growing Wealth
Once you have your savings plan set up, you can start growing your wealth in your 40s. These are some things you can do to accomplish that.
Diversify Your Income Stream
The first thing you will want to do is to diversify your income stream. The more income streams you have, the more protection you have when it comes to making money. Don't ever rely on one source of income to pull you through life. You should have plans A, B, and C at all times. Plan A is your main source of money. That might be a corporate job or a full-time self-employment gig, or a business that you run.
Your plan B may be a work-from-home job that you're skilled in. Keep that running in the background by doing jobs once a week or once a month. That way, you can fall back on that stream if something happens to the first one. You should also have a third income stream that you can go to if your A and B fail for some reason. It's not likely that they will. However, you still want to have a third option that can keep you afloat if something unexpected happens. Think about the pandemic and how it caught many people off guard because they only had one stream of income. You should use that information to protect yourself while you're trying to grow your wealth.
Take Some Risks
There is absolutely no gain without risk when it comes to money. Therefore, you should always be ready to try something new and adventurous if it can earn you a decent income. Additionally, you should never be afraid of your entrepreneurial spirit. Go for the opportunity to work for yourself if you love the work, and you've proven that it can bring you a consistent income. There's no rule that says you have to work inside a cubicle or in someone else's establishment. If you're in your 40s, you should be focusing on doing things that make you happy.
Play the lottery from time to time. You never know if you might be the one who hits it big one day. Don't assume that you won't win just because the percentages are low. You won't win if you don't play, but you might win if you do. Keep that in mind.
Start Making Some Smart Investments
The world of investing is huge. You can virtually make money investing in just about anything. It doesn't necessarily have to be stocks and bonds. You could invest in startup businesses. You could invest in the foreign exchange market. You could invest in fine metals or rare coins. Furthermore, you could invest in cars or houses if you have enough money to put into the investments. Many home investors search for fixer-upper properties and buy them for cash from various homeowners. Some investors go to auctions or look for foreclosed homes to invest in. The automotive business can be lucrative for you, as well, especially if you're handy with tools. You can find extremely inexpensive cars and purchase them and fix them to resell. You can make several thousand dollars each time you flip a vehicle.
The important part is to conduct plenty of research, no matter which direction you go in the investment world. Learn about the products or services you're investing in. Study books and blogs, and other information on the topic. Speak to top advisors in the field and get input from them as to how you should proceed. Start with something small, and then work your way up if you see that your venture is lucrative.
We Want to Help You Brighten Your Future
We recently introduced an app called the Goalry Mall. We wanted to make "shopping" for loans, services, and education exciting for all of our visitors. We also wanted to make it convenient. That's why we're offering you the opportunity to sign up for the Goalry Mall today and start changing your future. It works just like a virtual mall for financial products. All you need to do to use the Goalry Mall is to sign up for a member ID. The member ID will give you access to several floors where you can find loads of information about personal finance products. You can also visit different "stores" to get access to the products and services you might need.
Creditry, Insury, and Debtry are examples of some of the stores you can visit. Furthermore, there's a whole floor dedicated to communications. You can connect with people who can align with you and work with you to reach your financial goals. We think Goalry would be a great place to start if you want to begin taking steps to build wealth for yourself. We care about your success, and as such, we put forth every effort toward making navigation easy for you.
Everything You Wanted to Know about Finances in One Place.
Think of Ways to Make a Passive Income
Passive income can be an excellent asset to you if you can learn a craft that can bring it to you. Passive income is money that comes in without a vigorous effort on your part. Now, there are many ways that you can earn a passive income. Your goal should be to have at least one passive income stream that you'll be able to rely on if everything else fails. Two ideas you can consider are room and vehicle renting. These are passive incomes because you don't have to do too much of anything to earn money doing them. If you own a home, you can put an ad out and allow people to rent one of your rooms when they come to town. Some reputable third-party sites like Airbnb are out there, and they're designed to help you rent your room with ease and a sense of security. Alternatively, you can list your room rental in the newspaper or on a classified site. You can even hand up flyers and advertise the room rental to people who might see it in passing.
At least two reputable car rental sites are in business at this time. They will allow you to use their platform to offer one of your vehicles to other people who want to rent them. This system works just like that of car rental companies, except consumers get to pay less, and they don't always have to go through the hassle of offering a deposit. Think about those two ideas to earn a passive income for yourself.
Other Ideas for a Passive Income
You can do many other things to start earning a passive income, as well. One thing you can try is affiliate marketing. Affiliate marketing can bring you a lot of money if you put your heart into creating content around the product you're trying to push. It may be a great opportunity for you to read about affiliate marketing and inquire.
You can have a positive income stream through writing if you're gifted in that area. You could create an e-book that people might purchase over and over again for decades. You have to come up with a strategy for book writing and make sure that you write about a subject that will stay relevant.
You get the idea. Many opportunities are out there for you to make passive income. Take some time to do a little soul-searching and decide what you like to do.
Take Care of Your Family
As you're thinking about ways to grow wealth in your 40s, you should also be thinking about ways to take care of your family if something happens to you. Now is the time is to open up a life insurance policy so that all your loved ones will have protection if you meet an untimely death. Life insurance doesn't just benefit them, however. Your life insurance can work for you, as well. Some life insurance policies allow the policyholders to withdraw money from them after they build value. You may want to look into one of those policies.
Take this time to set up trust funds and accounts for any children or grandchildren you want to take care of. You can speak to a financial advisor who can help you set up the accounts and ensure that your family thrives once you are gone. It's one of the greatest gifts you can give them.
Think about signing up for the Goalry Mall today. There is no cost to you at all. You can get a member ID in less than two minutes and start exploring everything it has to offer. Of course, you can still reach out to us if you have any questions or concerns. However, we think you'll love the Goalry Mall so much that you won't want to leave it. Check it now and use it to get ahead at this crucial time of your life.
Final Thoughts
Now you have a rough outline of how you can go about growing wealth in your 40s. It's never too late to start saving, and it's never too late to start planning for your future, either.
We're here for you if you need any help setting smart financial goals. We're a one-stop-shop for financial education, services, and products. We're not a lender at all. We position ourselves as advocates of people who want to reach new heights with their financial goals. You can also think of us as a middle person who connects debtors with the services and products they need.
However, we can proudly say that we have partnerships and alliances with some top lenders in several industries. You can find a wealth of loans and other financial products through us. We can also connect you to educators who can help you navigate your way out of overwhelming debt and into total financial security.