Financial Commandments For 50-Somethings

By BankBazaar | May 25, 2019

In your 50s? That’s a perfect time to get serious about your retirement portfolio. Read on to know more about the healthiest financial practices in your 50s.

Congratulations, you are celebrating your golden jubilee! Another 10 years or so and you can bask in the glory of retirement. If you are in your 50s, you are most likely earning a fat salary, most of your debts are repaid, and your children have cut the apron strings and settled down independently.

Additional Reading: 5 Financial Moves That Women in Their 50s Should Make

Hence, it is the perfect time to give your finances a once-over and make changes if required. After all, you will be retiring soon and you must be prepared to live it out in style. Here is a checklist to serve as your guideline for juggling your financial goals at 50-something. Read on to know more.

  • Is your budget game on point?

Before starting any financial planning, the first thing to do is to audit your budget. Sit down with a book and a pen or with an auditing app to see how and where you are spending your money. It’s quite possible that in your 50s, you are making some expenditure out of habit rather than necessity. An audit will lay it before you, crystal clear. It’ll be both surprising and enlightening to see how much you’re still spending that you could be directing to your emergency fund.

Additional Reading: 4 Budgeting No-Nos You’d Do Well To Avoid

  • Terminate the inessentials

Start by studying smaller items. Is there any recurring expenditure that you must curb? For example, the newspaper. Do you read it or do you get all your news online and from your smartphone apps? Then, there is the TV. Stop asking for a newspaper if you don’t read it. Likewise, you can also look at your TV and magazine subscriptions.

Unsubscribe from anything that you don’t read or watch. But, if you are among the dying breed of readers, join a library. You will also make friends. For company, invite your friends to join you on library visits. You will actively seek company in your retirement, so start forging bonds now. Look at all small, excessive expenditures; what you don’t need, eliminate!

Additional Reading: Rules To Follow When You’re Buying A House In Your 50s

  • What to do with the money saved?

So, you have cancelled the newspaper service and other subscriptions that you don’t use. What’s next? Use this new pool of savings, along with your income, to catch up on retirement savings. Most retirement funds have the option to raise your contribution to fatten up the maturity amount. Beefing up your retirement fund should be your prime agenda if you are in your 50s. This is the last leg of your financial journey and you must set things straight.

Additional Reading: How To Plan For Retirement In Your 50s

  • Give your emergency fund a check-up

Now that you’re in your 50s, it’s high time you keep your emergency fund at the top of your priorities. By now, in all probability, your kids must already be working to find their footing in the corporate world. However, they may not necessarily have the means to support you immediately. It’s ok, give them time.

On the other hand, it’s important that you pay attention to your needs. After your retirement fund, focus on your emergency fund. If at all there is a financial emergency, you shouldn’t need to break your investments.

Additional Reading: How To Put Together An Emergency Fund

  • Upgrade your health plan

First off, start working out if you haven’t already! Wouldn’t you like to spend your retirement days walking around jauntily? Start taking care of your health and trim some of that ‘prosperity’ from your waistline. Check your Health Insurance Plan. Note that Health Insurance policy premiums increase in line with your age. So, the earlier you start, the better!

The fewer lifestyle diseases you carry, the lower your Health Insurance premium. Check and see if you and your family are thoroughly covered. Increase the insurance premiums if you feel the need to. Factor in all the medical help you might need in your old age and prepare for it. The best preparation, of course, is to get healthy!

Additional Reading: Things Which Make A Health Insurance Plan Great

  • Pay off your debt

The 40s are the best time to clear off your debt. The 50s are just to wipe away any remaining bit that might have trickled in. It’s time to take a close look at your debts and repay what’s left. It would be wise to keep away from adding to your debt by taking a loan for your kid’s wedding – unless absolutely necessary. It makes no sense to have a grand wedding that will drain your bank account.

If you’re still burdened by high-interest debt, now is the perfect time to ease your ways out of its jaws. If you have the bandwidth, liquidate one of your assets for debt repayment. This way, debt repayment won’t take a huge chunk of your savings fund. Once you’re debt-free, you can start aligning your savings with your financial goals!

Additional Reading: 5 Precautions To Make Sure Your Personal Loan Does Not Become A Debt Trap

  • Review your investment portfolio

If you haven’t been serious about the way your retirement savings are allocated among different investment vehicles, now’s an important time to revisit your investment portfolio. Ideally, your investments are avenues of income to be used post retirement.

Analyse your investment portfolio to check for ventures that have not been considerably rewarding. This is the time to decide wisely and check if your portfolio is adequately diversified?

Additional Reading: Getting A Home Loan In Your 50s

  • Turn your kids into independent, young adults

Now that your kids are young earners, it’s time you let them provide for themselves. No, we’re not saying you cut off any monetary help. All we are saying is, these must be the formative years for them to develop financial habits of their own.

For instance, a good way to help them plan their finances is to let them learn to manage their funds. That way, they’ll know how to best manage their money and will count on you for financial guidance when they slip up. With retirement soon approaching, your kids need to be fiscally fit.

Additional Reading: Time To Tell Your Teenage Kids To Get Personal With Their Money

With these pointers you’re sure to sail through your 50s without a flicker of worry. Moreover, when you near retirement, you can be assured of having a strong financial footing!

If you’re on the lookout for any financial products such as Personal Loans or Credit Cards, do check us out! We’ve got all your financial needs covered!

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