The term midlife crisis is usually associated with balding men buying flashy cars and trading in their wives for younger models. The film industry has compounded this stereotype. However, the reality is that as we hit midlife, we are increasingly likely to start struggling with our finances. Continue reading for our advice on how to avoid this midlife financial crisis.
Plan ahead
Planning ahead is a crucial step towards financial independence and also the ability to set money aside in case of an unexpected incident requiring an injection of money. Putting money into a savings account over the years will ensure that you have a lump sum available should you require it. Investing may seem like a good option but be sure to check if you will be able to access it in times of hardship.
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Avoid overspending
Although we often spend to our means or even beyond it, if you can pull back your outgoings a little, you will have much more flexibility in the future. Consider every purchase you make, however big or small. If your current vehicle works perfectly fine, evaluate if a new one is really necessary, for example. The same can be said for furniture within your property. We all like to keep up with the trends every now and then, but if money is tight, it may be worth trying to upcycle your current items rather than splashing out on brand new items. Meals out are a lovely treat, but consider inviting friends over to your house instead, perhaps even suggesting each couple brings one course or dish. Rather than resorting to takeout, plan your meals at the start of each week and you can save a fortune.
Tackle existing debt
If you already have debt, the last thing you want is to get into a worse financial situation. Tackling existing debt is essential. If you have several credit cards, it may be worth seeing if you can consolidate the amounts you owe meaning you pay one bill per month. It might even be possible to have 0% interest for a set period of time meaning you only need to use a low amount as a minimum payment. Be sure to check that the fee for changing is not too great as this may negate the purpose of doing this in the first place.
Don’t lend to family or friends
It may sound mean of us to suggest this, but lending money to family members and friends, even those who you trust entirely, can lead to devastating consequences. All too often, the loan never gets repaid or paltry amounts are deemed to suffice. When it comes to business, no one would doubt the necessity of getting the authorities involved when it comes to unpaid debt. However, most people feel differently when it comes to family and friends because of the knock-on effects.
