Spending years in life
Stage 3: The spending years: (45-55) yrs
This period 45 to 55 years is very costly for all of us. whatever you earn may be less. All family expenses occur at this age only. You cannot avoid any family expenses. Children school fee, housing loan emi, parents medical bills, monthly rent etc., these things would eat most of your earnings. To overcome this, you need to start saving from early stages of life.
People from 25 to 35 never look back and spend as if they would be at the same condition. Savings habit started in younger age can only help you to overcome from all difficulties. spending years in life would come and go but earning year would come rarely. At this age if you get some returns from earlier investment form LIC Life Insurance policy or Mutual funds would be very helpful. Planned manner of investment in Mutual funds is Systematic Investment plan (SIP)
Things that happen at this stage:
- Income should be up at this stage, because you are moving into your peak years at work.
- But spending is also up, because you almost certainly will be paying college bills at this stage.
- Saving money will be hard -but you must do so.
Potential trouble spots:
- Letting spending on college eat up your retirement nest egg-and cutting back on new contributions to retirement savings plans.
- Going deeply into debt , as you try to maintain your lifestyle in the face of heavy college bills.
- Increasing the risk level of your investments. Partly that comes because money is flowing out so fast to pay college bills , but also because you have been investing for years ,and are aren’t as cautious as you used to be.
- Not making serious plans for retirement you feel you haven’t saved or invested enough to give you the retirement you want.