Anyone who’s approaching their 40th birthday will no doubt feel as though they’ve already learned a few life lessons. There are, however, lessons to be learned in every aspect of life, so when it comes to your finances, chances are most people could use a few pointers in that regard. With that in mind, then, here are some money lessons to learn before reaching 40.
It’s just money
The first lesson you should learn is that money is just money. There are more important things in life than how much cash is sitting in your bank account, so make sure you take the time to enjoy yourself. That doesn’t mean you should book a cruise around Europe if you can’t afford it, but it also doesn’t mean you should be tight with the purse strings. Life is meant to be lived.
Automate your savings
If you struggle to put money aside each month, then make your bank do it for you. Life will pass by in a flash, so making sure there’s some money at the end is important. Many banks can take savings right from your paycheck before you even notice it’s gone, and there are phone apps that also do that job for you.
Invest in yourself
The smartest investment you’ll ever make in life is to invest in yourself. You have to live with yourself every day, so make sure you are the best possible version of yourself. Take a class, master a skill, or start your own business. Basically, do whatever you think is going to take you to the next level. Investing in yourself can have a huge impact on your financial future as well, but do try to find you a job you love doing.
Higher salary, higher risk
You might think that having one of the highest salaries in your company makes you safe, but it really doesn’t. If things go badly for the business, the top earners are often the first to get cut, so if you have a good income, make sure to put money away. Relying on your company to stay afloat is a risky strategy if you are living just within your means.
Not all financial pros are experts
Do you remember the financial crash? Who do you think caused it? Using a financial expert can be a great way to look after your money, and sometimes make more through smart investments. It’s important to keep in mind, though, that just because you’re speaking to a financial expert doesn’t mean they know what they’re talking about. Some experts are only trained to sell the products from the company they work for, and know very little else outside of their own little bubble.
Don’t chase money
You can spend your entire life chasing more cash, but when you get to the end, you’ve not actually experienced anything. Having money can give you a great lifestyle but don’t chase it for the sake of just having more of it.
These are important lessons for you to learn before you hit 40. Don’t forget to live your life for you and your family, save any money you can, and don’t get too hung up on how much you make.