5 Steps To a Financially Secure 40

The subject of money is exciting at the same time strikes you with deep thoughts about your financial future.

In your 20’s life seems like a roller coaster where you want to live a carefree life, make merry and drink yourself silly. However, in your 30’s life ushers in a new set of responsibilities as you begin to settle into family life.

Some, realize late that at this stage the financial risks you take are more detrimental than when you could have taken them while in your 20’s and single.

Rather than wait for 40’s to catch up with you, there are simple measures that you can take that will guarantee you a financially secure 40.  Read on to know them well.

#1. Save and Avoid Consumer Loans

Everyone wants to make their life better. However, this does not mean that you should borrow a loan to take your lifestyle to the next level. Unfortunately, many people get embroiled in consumer loans that make them poorer. Financial institutions are always willing and ready to give you their money anytime you qualify and need the money. Nevertheless, they are not going to be there for you when you are broke and cannot service your consumer debts.

To be on the safe side borrow money to invest. When your job still gives you the opportunity to borrow a loan, take advantage of the opportunity by putting your money into good investments that are worth your money and sacrifice.  Again, ensure to save and invest first before putting all your money into your lifestyle expenses.

#2. Work Smarter

Working smarter is totally different from working harder.  A person who works hard spends much more time to achieve the same results a smart worker achieves for a far less time.

There is no rocket science to this but the difference is that the smart worker has realized there is a way he can achieve much more in a far less time.

For example, an employee who sits at his office from 9-5 pm may be busy yet not making any progress. On the hand, an entrepreneur running his business could be making more money in a day for a lesser time compared to the office worker.

You need to think forward. What better ways could you use to solve problems today that were never used in the years before? For instance, if you run a company that needs collecting data, what are you better at using? Is it electronic data collection tools such as ODK and commcare or use of manuals like pen and paper to collect data.

What do you think are the resources that you could leverage on to make your life better? It could be money, time, experience or networks. Find it out.

#3. Have an additional Source of Income

If you are like James Mworia, the CEO of Centum Investments who rakes in Ksh 16.9 Million as his monthly salary,  or Bob Collymore, CEO  Safaricom who takes home Ksh 10 Million per month you can as well focus on your job solely till retirement. If not, then consider having an additional source of income to supplement your main income. If you only depend on your main source of incoming for a living, then you could be brewing trouble in the future.

If you happen to lose your job, considering that you have a family to take care of, you might get stuck on how you will pay school fees for your kids besides servicing other loans. What is your passion? What skills do you have that you can put to good use for your business? It could be freelance writing, consultancy or blogging.

#4. Get Medical Cover

Well, just as it is said that Christ will come back as a thief so is sickness when it strikes. You are better off having a medical cover that can take care of you and your family in emergency situations.

Most people tend to rely on NHIF cards that are limited in terms of providing a comprehensive medical cover for their clients. Consider getting an additional medical cover that will cover you and your family sufficiently when dire situations come along.

Also, there are other insurance policies that you could look into such as life insurance, house insurance among others.

#5. Focus on Both Short-term and Long-term Investments

Some of the long term investments you could focus on include purchasing land or investing in government eleven-year bonds. However, as much as land increases in value over time, how are they going to help you acquire quick money when you need it most.

Rather than focus on accumulating properties all over, you could use your money to build systems and businesses that work for you even in your absence. As such, you can be sure of a constant stream of income even in your sleep.