Setting up your life
Stage 2: The Setting-up years:(35-45) yrs
Things that happen at this stage:
- You are already settled with your finances to some extent.
- You probably own a home and one or more cars, and have learned a lot about managing money and financial plans for the future.
- You probably have moved beyond your first job into something that pays better and offers more long term potential.
Potential trouble spots:
- These are heavy spending years, as the kids get older, and living expenses pile up. Its easy to let your controls over spending and debt slip which can undermine all your financial plans.
- Keep insurance current with your growing net worth. If you don’t have enough life insurance ,your premature death, at this stage, could leave your family nearly destitute,.\
Don’t let the first signs of financial success go to your head. You are making a decent income and you have started to build retirement savings to a reasonable level. Its easy to look at your accumulating wealth and start frittering away money on impulsive items from fancy vacations to a more costly sports utility vehicle than you can really afford.