7 Simple Ideas to Improve Your Financial Health in Your Forties

Being in your forties, you are most likely at your peak earning capacity. If you have made sound investments and handled money well back when you were in your twenties or thirties, there’s a great chance that you are already on track in terms of gaining financial stability.

But if you’re already in your forties and just starting to keep close tabs of your financial standing, now is the time to buckle up and get serious.

Don’t worry, you still have time to up your game. It’s not too late to start new ventures that could open up a world of possibilities when it comes to growing your money so you can afford a healthier, better lifestyle during your retirement years.

Here’s how you can start achieving your long-term life goals with these simple solutions to improve your financial health in your 40’s.

1. Start saving for retirement (if you haven’t already).
   
   Filipino investors have the lowest amount of retirement savings in Asia. According to a 2018 study, a working Filipino citizen usually has a deficiency of over P4 million in personal savings, which is what’s considered an acceptable amount for sustaining a comfortable life upon retirement.
   
   If you have not yet started saving for retirement, now is the perfect time to do it. If you are at your peak earning capacity, it only makes sense for you to boost your retirement savings plan.
   
   One investment product that can enable you to fulfill your retirement savings goals is BPI AIA’s Dollar Protect Plus.
   
   This dollar-denominated savings and life insurance plan allows investors like you to invest in global bond and equity funds. You can enjoy the benefits of life insurance coverage so you can grow your money and protect your family at the same time.
   
   
2. Avoid lifestyle inflation.
   
   As you earn more, you are usually enticed to spend more—which could potentially bring your net worth down to a cold, hard zero. You are entitled to enjoy your hard-earned pay, but remember not to succumb to the trap of lifestyle inflation.
   
   
3. Learn a new skill or hobby.
   
   Never stop growing. Being in your forties is an awesome period of growth where you can start learning new skills. Taking on new hobbies will not only stimulate brain activity, but also enrich your skillset and elevate your marketability to a whole new level.
   
   
4. Start a side business.
   
   Now that you are nearing retirement age, having a side business will allow you to keep your mind sharp and give you another stream of income that you can use to fund your retirement. Starting a side business or getting involved in one or more lucrative side hustles just might be your ticket to attaining real financial independence. This will also set you up to explore more investment opportunities in your fifties.
   
   
5. Grow and maintain your emergency fund.
   
   Building an emergency fund is a sure-fire way of upgrading your overall financial health. Consider increasing the amount you set aside for your emergency fund, and stay committed to replenishing its balance once you use it for any life event. If you already have a significant amount in your emergency fund balance, you might as well consider storing a fraction of it in a taxable investment account so that it can exponentially grow over time.
   
   
6. Pay off any consumer debt you may have.
   
   One of the biggest financial goals you must work towards is to get rid of high-interest consumer debt. High-interest debts should ideally be a thing of the past once you enter your forties. You can do this by sticking to your budget plan and tracking every peso you spend on credit. Remember that the cash you pay in interest when you have consumer debt is money that could be channeled toward growing your finances.
   
   
7. Consider downsizing your lifestyle.
   
   Being in your 40’s has probably resulted in the accumulation of so much stuff, in the literal sense. Assuming that you are not into minimalism, perhaps it is a good idea to downsize your cluttered lifestyle at this point.
   
   Maybe your kids have grown up and moved into their own homes, and you have no need for such a big home any longer. Or, you may have more cars than you truly need. The proceeds from selling your excess possessions can be directed towards your other priorities like getting the right health insurance policy for your current needs, growing your emergency savings, or adding to your retirement fund.

Each decade of your life is filled with its very own set of financial struggles and opportunities. Your forties are as good a time as any to strengthen your financial health. While it is quite easy to get swept up by your current issues, taking steps to secure your financial future now is a decision you would not regret. Future-proofing your finances will allow you to enjoy a better, healthier, and longer life, most especially when you reach your golden years.

Get in touch with one of our Bancassurance Sales Executives at any of the 900 BPI branches and find out more about how you can prepare for your future.