4 Ways to Get Financially Fit in Your 40s

Many people in their 40s are facing an uncomfortable fact: They are just not where they had hoped to be financially. Fortunately, all their life experience can help correct past mistakes.

"There are a different start time for everyone," said Jay Howard, consultant and financial partner to the financial MHD in San Antonio, Texas. "But no matter when he comes, people gather looking down the barrel of a gun as they consider retirement. "

one challenge is that it is impossible to advise 40-somethings based on demographics" life stages "tidy. Some just starting families, while others send children to college. They are married, single, divorced, and just about everything else

But for those who are still struggling with financial instability, these four principles can help move forward with confidence.

1. Acknowledge what you have done right.
There could be a great decision sandwiched between some fail, or just one good habit that can mitigate the impact of a host of wrongs.

Take the example of Kiera Starboard, a 46 year-old controller in a San Diego software company. A mother of two adults and a teenager son son-she always have enough life insurance to both term and permanent priority, the result of his previous training as financial advisor. "Even if it was tight, I made the payments," she said. "It was a priority for the sake of my family, for my own peace of mind."

In contrast to the 40% of Americans have no life insurance, Starboard was protected when the unthinkable happened last August Less than two years after her marriage, her husband, Steve, was killed while riding his motorcycle to work in a month after they bought a smaller, the life insurance policy to supplement its coverage the employer.

"In having to face financial difficulties above all else, it would have been unbearable, incapacitating," says Starboard. "My son-and I certainly are in a much better position today than we would have been, had Steve and I followed the advice I used to give to others."

2. Take steps to consolidate the coming decades.
for many, the hardest part can be to learn to put your own long-term future of first sometimes for the first time in your life.

"I see people focusing on college savings for their children, and not enough on retirement or an emergency fund for themselves," says Starboard.. many counselors emphasize that children can borrow for college if necessary, but no one can borrow for retirement

the most important step is clear, said Howard. "You must have a written financial plan, period Because this plan will dictate what you need to do to be successful all of your life.

"The financial plan is your roadmap," he continues. "In this portfolio will be your needs, your savings goals, and your insurance related needs."

Finally, make sure your plan takes into account inflation, usually estimated at 3% per year. said Howard, "inflation is the silent killer that eats your nest egg."

3. Apply wisdom fought hard you won.
"Treat numbers obtained by your plan such as savings the invoices to be paid monthly," advises Howard. When the money comes in, it's easy to start thinking about a new kitchen or a trip to Tulum. "Just be patient and keep the bills paid."

using this wisdom also applies to the big stuff. As executor to the estate of her husband, Starboard chose to take major decisions. "in a loss before, I engaged in real estate transactions and other things prematurely. At the time, the good thing we really had to do, but my pain clouded my perception. I had a painful expensive learning lesson. "

4. Concentrate on your bright future indeed.
Forward thinking is an essential part of your financial plan, says Howard." Getting help really consider this type of retirement you want. For each aspect, really drill down. For example, where do you live? Want to be close to your grandchildren? Will you have the money to go see? At what frequency? There are no financial planning, it is planning for life ".

If all forward thinking feels presumptuous, Howard reminds eminently quotable Yogi Berra, who said, "If you do not know where you go, you can not get there"

And finally, remember the simple refrain: .. it's never too late