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40 Financial Things You Should Know By 40

 
40 Financial Things You Should Know By 40

 

 

By the time you turn 40, you can't be financially clueless anymore. You need to make sure you get your money issues in order...so that you can retire in your 60s.

According to the Huffington Post, here are 40 FINANCIAL THINGS YOU SHOULD KNOW BY THE TIME YOU'RE 40:

 

1. The three basics of a solid financial foundation. Credit card debt paid off. Emergency fund stocked up. Retirement account(s) in existence and growing.

2. How to create a budget. Without one, you may not reach any of your goals, like buying a home or paying off your credit card debt.

3. How much you should be saving. The answer: 20 percent. Not sure how we arrived at this number? Look no further than the 50/20/30 rule: 50% is reserved for essentials (mortgage, rent and groceries), 30% is for your lifestyle choices and at least 20% goes to "financial priorities," which include your debt payments, your retirement contributions and your savings.

4. Your net worth. This is the sum total of your assets (bank account balances, savings, investments, etc.) minus your debts (loans, mortgage, credit card debt, etc.).

5. How much you make and how much you spend each month.

6. How to get out of debt. Hopefully your debt repayment efforts are already in full swing, but, if you're not there yet, now's the time to make a plan.

7. Your credit score. Your credit score determines not only what kind of credit cards you'll get approved for but also how expensive your mortgage and car loan would be.

8. How to pull a free credit report.

9. It can take a long time to save up a down payment. Before buying a house, you should be financially stable. If that's not until your 30s or 40s, that's OK.

10. What is a financial emergency and what's not. By 40, you ought to know what it feels like to have a fat six months of savings sitting pretty in your account and the only five reasons you should be dipping into it.

 

CLICK HERE FOR THE FULL LIST/ARTICLE.

 

photo credit: LendingMemo via photopin cc

 

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