As we move into our 40s our finances are naturally pulled in different directions by competing priorities.
During this period, we are probably nearing the peak of our earning powers, yet it’s also a time that our expenditure is at its heaviest:
- Your mortgage is probably relatively large, and while interest rates are low, they will inevitably rise at some point in the future putting further strain on the household finances
- You may want to move to a larger house, which requires additional borrowing
- Your children may still be young, with the cost of childcare putting a strain on your finances
- Of course, they may be getting older, which brings with it additional financial burdens
- They might also be considering university or higher education and you want to provide financial assistance
So how do you reconcile planning for the future, which we all must do if we hope to retire, while meeting your day-to-day expenditure, and living the lifestyle you want?