Surviving the Sandwich Years: Smart and Secure Financial Steps to Take in Your 40’s and 50’s

In the normal scheme of things, when you reach your 40’s or 50’s and have a family, you are most likely going to be looking at funding some college expenses for your children, and that need will be immediate or not so very far away.

Add in medical bills, helping them onto the housing ladder and funding a wedding, and you can soon see why this life period is often referred to as the sandwich years.

Developing a survival strategy

Different periods in your life will present changing financial challenges along with milestones in your career and personal life, so it makes sense to try and anticipate these events well in advance.

None of us ever knows exactly what the future holds, but if you have children for example, you can at least map out some financial events that are going to happen along the way.

There will always be some unexpected expenses, which is why resources like www.kingofkash.com/payday-loans are there to offer a short-term solution. One of the best strategies to employ if you can, is to have access to some cash reserves. In an ideal world, having access to anywhere between three and six months of monthly cash needs, should help you ride out most financial storms, but with everything else to pay, it is not always that easy to accumulate that sort of spare cash.

Another key point to remember that is often used in business, but applies to your personal financial planning too, is that if you fail to plan, you plan to fail. Not having some sort of financial plan and a list of priorities, could leave you exposed at key points in your life.

Every little helps

It is often surprising to see how even a small amount of money put away on a regular basis, can build into a decent pot of cash, before you know it.

One of the reasons why a lot of people don’t start building up their cash reserves and saving for the future, is that they don’t think they can put enough money aside to make it worthwhile.

Any amount of money put away regularly is going to help. Never think that you don’t have enough spare cash to justify starting some savings. Skipping on your regular coffee on the way to work each day for example, is one way of generating some extra cash. Simply put what you would have spent each week aside instead, and see how quickly that small sum can add up.

Make clearing debt a priority

The vast majority of us have some sort of debt obligations, some more than others of course.

Credit card debts, student loans and medical bills can all eat away at your financial stability and it would be a good idea to make clearing debt a priority, so that you can then put that monthly money to good use, by saving and making some investments that should help you to secure a better future.

A good strategy would be to work out exactly how much debt you currently have and how much spare cash each month to work with. Allocating some of that spare cash to paying down debt and the rest to savings, will help put you in a stronger financial position quicker than if you just keep making the normal payments.

Make the most of your employee benefits

As your career develops, there is a good chance that not only will your salary increase, but you will most likely also be offered some increasingly attractive employee options.

It can often pay to take full advantage of these employee benefits. Retirement plans are a clear example of why it may be rewarding to max out your employee benefits, as the amount your employer contributes to your 401 (k) each month is a tax efficient- way of saving for when you retire.

It is often worth looking at matching their contribution with your own money, and you may want to find out what the maximum contribution you can make is, so that you can make the most of the opportunity.

It often pays to get professional advice when you think you need it. If you want to see what options you have or what you need to do to make the most of your money, spending some cash to get an educated opinion, can often be justified if it saves you making mistakes and boosts your earning potential.

Molly Peters writes about personal finance. She is a personal finance advisor with years of experience and enjoys helping people to master their money.

 

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