We all know the importance of having a nest egg aka savings for your retirement.
Saving for the future seems critical now in your 40’s more so than the prior decades.
If you have not been serious about saving, not had the means to save money or been ignorant about investing and growing your money, don’t fret.
Your 40s are a great time in your life to start saving! These are some of the best working years.
You are physically fit and able for the most part. Not too many major health concerns.
Most people have settled in a line of work or at least know by now what they want to do.
So how can you save and grow money in your 40s if you haven’t been diligent about it before?
Here are 7 ways to save and grow you money for starters without sacrificing your cup of coffee!
- Start saving a percentage of your paycheck. You can begin with the smallest amount possible. The key is to automate it. You can set it up with your employer and bank accounts to send x% directly to one account and the remainder to another. By letting it go directly to a savings account, you never see it and are not tempted to spend it. Learn to live off the rest of the money every month.
- Work towards debt-free living. If you have a little bit of savings, then pay off the largest interest debt.
- Invest in Vanguard ETF funds. I am a novice myself, when it comes to investing. But I recently have made conscious attempts to get more financially savvy and have been reading quite a bit. The one consistent and solid advice I discovered is following JL Collins advice. His book Simple Path to Wealth is easy to understand even for the non financial person and gives the simplest and most effective advice to open a Vanguard account and investing in VTSAX for stocks and VBTLX for bonds. Again, everyone’s financial situation is different. Love the simplicity of his advice. Investing does not have to be complicated. If you are in it for the long haul, then Vanguard index funds seems to be the way to go.
- Max out 401K. If your employer offers saving through 401K, then max out your savings there. Some employers also offer 401K matching. It is free money that you don’t want to miss. Take advantage of that free money.
- Refinance mortgage. Interest rates are fluctuating. And sometimes we may be tied into higher mortgage rates. If your mortgage interest rates are higher than the market average, shop around for refinancing your mortgage. Find a lower rate and move your mortgage over. Again, be careful and understand all the fine print.
- Reduce the number of credit cards. There is no need for a person to have more than 2 credit cards. If you have more than 2, try and get rid of the rest. You need to have one that is accepted in most places such as a Visa. And another that gives you significant points or other benefits that can be used in most places as well. Personally I have an Amex Delta card to rake up on my Delta points and a Visa card.
- Eliminate unneeded services. Look at your subscription services and see what can be eliminated.
There are tons of different ways to save and grow your money. These are some of the first few that are within your reach and doable. Let me know which ones you are going to implement.