The mid-career phase of your life can be one of the most exciting and rewarding for so many reasons. This is the stage when you’re busy fleshing out your dreams and building the bright, secure future you’ve always dreamed of. However, life at that stage can also feel like a delicate balancing act with many different financial responsibilities to take care of.
Saving for retirement, covering your child’s education, keeping debt in check – all of these long-term financial goals and more bring big challenges to the table, especially during difficult times. But the good news is it’s all doable with the right strategies and guidance in your corner. Here’s a closer look at what you need to know to build the stable financial foundation you’re seeking.
How to Build a Strong Financial Foundation
Gaining financial stability doesn’t just happen, it’s about more than good, old-fashioned hard work. It also calls for solid financial planning, foresight, and consistent action. Here are some tips to get you started in the right direction.
Start with a budget
Think of a smart, well-planned budget as a blueprint for the stable financial foundation you’re pursuing. It helps you achieve a solid understanding of where your money is really going and makes it easier to maximize your income. Here are some tips for getting started:
- If you’re not already tracking your spending, start by doing so for a month. This will help you develop a clear picture of how, when, and where you spend.
- Keep track of both essential expenses (e.g. groceries and housing) and non-essentials (like subscription services or meals out).
- Use what you learn to establish a reasonable ongoing budget that fits your needs and supports your long-term goals. (A financial consultant can help if you’re not sure where to start.)
- Stick with the plan, and make necessary adjustments as needed.
Reduce unnecessary expenses
This is a phase of your life when expenses can pile up quickly, especially in a day and age with so many available conveniences at your disposal. Streaming service subscriptions, membership fees, takeout meals, and all the rest of it may not cost much individually but collectively they can spell trouble for your long-term financial goals.
You don’t necessarily have to cut out all your creature comforts, of course. But you should look for ways to cut back and save on what’s really important to you. Try consolidating your subscription services. Cancel that gym membership you never use. Shop smarter by clipping coupons, and save money by swapping takeout for meal prep more often.
Little expenses add up fast, but so do small changes that help your resources go further.
Invest savings for stable returns
Saving is smart but wise mid-career investing is the key to substantially growing your wealth over time. Explore stable investments through your employer, like 401(k) opportunities. Look into IRAs, stocks, bonds, and other options, as well.
Investing can feel daunting when you’re brand new to the idea, so don’t be afraid to start small. Focus on stable picks that yield consistent returns, diversify your investments, and seek professional assistance if needed.
Investing in the Future
Although it’s never too soon to start working toward your long-term financial goals, your 30s and 40s are the pivotal time for building a firm financial foundation. This is the time to figure out what you’re interested in working toward and take action.
However, it’s also important to realize that everyone’s goals are different, so putting together a success strategy that serves your unique needs is essential. MyStages® can help you map out a long-term plan for getting from where you are to where you want to be, as well as put together a strategy for following it.
Why Having a Nest Egg Is So Important
Even the most airtight long-term financial strategies can hit snags you never saw coming. Examples include unexpected expenses related to:
- Medical emergencies
- Out-of-the-blue home repairs
- Car trouble
- Recession-related challenges
- Job loss and downsizing
- Natural disasters
A nice, healthy nest egg can take the sting out of any curve balls life decides to throw your way and help you navigate financial challenges with grace. How big should a nest egg be? Experts recommend setting aside enough resources to cover 3-6 months of living expenses. Keep the funds in an account that’s easy to access on short notice.
Naturally, it takes time to build a nest egg, but the peace of mind it will bring you is priceless. So is the ability to bounce back from unexpected expenses or setbacks without accumulating debt in the process.
Achieving Financial Stability
Establishing a lasting financial foundation in your 30s and 40s is about more than figuring out how to keep the bills paid and stay out of debt. At its roots, it’s about building a wonderful life that finds you fully empowered to come through for yourself, as well as those you love most.
Financial stability leaves you free to enjoy your life and pursue your goals instead of constantly worrying about the future. It ensures you’re adequately prepared for the unexpected and secure in the knowledge that you can handle anything that happens.
Keep in mind that the journey toward even the most ambitious long-term financial goals starts with a single step, and you don’t have to take that step alone. The financial planning experts at MyStages® are here to help you set realistic goals, cobble together appropriate investing strategies, and achieve the financially stable future you deserve. Contact us today and let us know how we can assist you!
