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Important Milestones You Should Reach By Age 40


By the time you get ready to blow out 40 candles on your birthday cake, it’s likely that you will have already accomplished many personal goals, such as getting married or having a child (or two) for example. Yes, plenty of life happens over the many experiences from our 20s and 30s. While everyone’s journey in life is different, there are several financial wins that you should strive to accomplish by the time you enter the decade of your 40s. Especially if you have your eye on retirement one day, it’s essential to be strategic about your money in such areas as where it’s going, where it’s invested, and how much you have. Have at least six months of living expenses in savings. Surveys indicate that 40% of Americans lack even an extra $400 to handle an emergency today. If you face anything from job loss to a sick family member, expenses can pile up quickly, and you can find yourself in a jam. If you don’t already have a disciplined savings plan, consider making automatic transfers from your checking account to your savings account to make it easy on yourself. Have a detailed financial plan for your future. Think about the lifestyle you’d like in 20 years. Traveling around the world with your spouse once the children are grown? Maybe starting a business venture in your later years that ties in with your favorite hobby? Whatever the case, you need to take active steps to make it a reality. If you aren’t tracking toward a specific goal, it will be challenging to stay the course and focus on the daily requirements needed to meet it. You might even consider creating a vision board to help you think critically about your retirement days so that you aren’t tempted to overspend today. Have money stowed away for your children’s future. Whether you have a child who’s 12 years old or 12 months old by the time you’re in your 40s, it’s time to start planning for their future. One popular way to do so is to invest in a 529 plan. Such savings plans grow tax-deferred, and withdrawals are tax-free if they’re used for qualified education expenses. 529 plans are also referred to as qualified tuition programs and Section 529 plans. Prepaid tuition plans allow the account owner to pay in advance for tuition at designated colleges and universities, locking in the cost at today’s rates. Have an idea where your career is heading. Setting career goals is important to ensure that you don’t become stagnant or too complacent in your career. Continually sharpening your skills and furthering your education will do wonders to maximize your earning potential. As always, it’s important to stay in close communication with your manager to take on additional work as needed to increase your value in your position and demonstrate your dependability to your employer. Create a budget and actually stick to it. By now, you shouldn’t be afraid of the “B” word: Budget. If you’re still just glancing at your financial statements and hoping for the best, you’re way behind. Success in regard to your finances is not a possibility until you know what’s happening to your hard-earned cash. Certainly, by the age of 40, you should be able to answer the following questions: What is my budget, and what do I spend my money on every month? Choose a trusted Personal Banker or Financial Advisor. Just as you seek the wisdom of medical professionals to manage your physical health, it’s important to partner with a trusted expert in the area of banking and investments. Citizens National Bank is fortunate to have many skilled bankers and investment representatives who can cater a plan to meet your objectives, so don’t hesitate to put their expertise to work for you and your family.

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