Financial Tips for Those in Their 40s | Fusion - WeRIndia

Saving money at the age of 40s can be quite troublesome for many. There are many obligations like loans and children’s education. However, by following these tips, you can get a better financial situation even in your forties.

Reduce debt

At this stage, it is always better to have as less debt as possible. Avoid taking personal loans or any expensive loans. Even credit card interest should be avoided. Repay any credit card outstanding amount and clear out your loans as quickly as you can.

Look for a good retirement plan

Having a good retirement plan will give your future a lot of stability. It is a very good idea to start investing in some schemes like the Public Provident Fund (PPF). PPF is very useful because of the several tax benefits associated with it. The lock in of PPF also helps save money.

Try to avoid shares

Investing in shares can be a great idea. However, try to keep it to a minimum. It is good to invest in instruments with as less risk as possible.

Have a critical health insurance policy

Having a critical insurance policy is important for financial security. Make sure you have a policy that covers cancer, renal failure liver diseases and similar diseases. There are several policies which give a cover of Rs. 10 lakhs for a premium of Rs. 5000 or so.

Start cutting down on expenses

Savings are important to have future stability. Make a list of all your monthly expenses and take note of expenses that can be avoided. Try to cut down on them. Repeat this process until you can save a hefty amount every month. It is also a good idea to keep money separately for children’s education and other important purposes. This reduces a lot of pressure financially.

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