LEARN FIVE IMPORTANT THINGS TO DO BEFORE REACHING 40 YEARS

LEARN FIVE IMPORTANT THINGS TO DO BEFORE REACHING 40 YEARS

1. Set financial goals

Put a personal decision of what you need and where you want to be in the future. Put your financial objectives into the following categories; Short-term goals, Mid–term goals and Long-term goals. You can divide these objectives according to the needs you have. Different Studies have attempted to set six different models of these objectives as follows:

Short-term goals: example of this is likely to buy a new car (although this depends on personal capacity), organize wedding and also to continue with high school.  So you need to make sure you set out short term objective before attaining 40 years.

Mid Term goals: example of this objective is likely to get children, to build a house and also to start a business

Long-term goals: example of this objective is likely to put the money for retirement, to create house for spending holiday (vacation home) and also to open children account.

You’re supposed to set these goals before 40 years so as to live in a peacefully way and your family stayed blessed.

2. Make emergency funding

Most of us do not have the character to prepare for disasters and when the disasters happen we are in the worst situation. Thus leads us to borrow or take advance salary to handle our problems and then left many in chronic debt. Imagine how much money is needed for disasters or emergencies that may occur in the life cycle of every day. It is recommended that, try to put your money and use the corresponding month for 3 months - 6 as the passage of an emergency. This is money that will be ready to be used once you receive any emergency, such as a family member illness, accidents, job loss, sudden disaster, etc. If you prepare this in best way will not disturb you balance and lead you into chronic debt.

3. Start investing

Investing gives us the extra income to reinforce what little is earned from salary or bank money was handed down this helps you to begin the process of becoming rich.

4. Start investing for retirement preparation

This is more for those who work in various jobs and self-employed as well. Statistics show that a person of normal life needs 70% of its income before retirement to help him to continue living in the same state he possessed, soon he will stop working. example; Someone who gets sh. 500,000 per month will need 350,000 shillings per month once he ceases to work just to be able to live a life at least equal to that he had lived before leaving work.

The Pension funds (NSSF, PPF) is not enough to satisfy your needs at all. And we have not forgotten that the statistics show that the average person expected to spend 1/3 of his life at the time of retirement (how long until your body can not produce as previously). So my dear we need to prepare our self while we are energetic to make sure we prepare the life of tomorrow.

5. Calculate your ability to be ready to lose; to what extent are you willing to lose. (How much are you ready to take risk?

Surveys show that younger people have the ability to accept up or be prepared to lose (taking risks) than adults. The data also indicate that the worlds most successful were already lost. You cannot call yourself a trader if they have the courage to be willing to invest it in your capital which is not guaranteed to restore profitability.

It needs very high level of acceptance of loss and be prepared to take risks. For this to find an opening in advance is advised to start investing when you're young at a time when your ability to lose you're on, as opposed to waiting too much time as an adult who will be wary of everything you see or thinking.

Recognize your ability to be prepared or to lose. Know your ability to tolerate a loss when it happened Teens has great potential for being willing to try new things regularly, and be able to easily adjust for errors when they occur rather than very womanhood. Whereas obligations exceed the number of hairs on your head and the stress level is very high.