The way we plan financially is extra challenging in 40s. Trying to balance living for now whilst preparing for future.  Wouldn't it be amazing to create a great life now but to also ensure that our future selves can continue with this lifestyle? Here some tips to help

1.       Understand what the money is for. One of my favourite phrases is "money is the fuel, not the destination". Think about the life you want, what you want to achieve, how you want your money to serve you.

2.      Get organised. However painful, carrying out a financial 'spring clean' will bring you clarity and give you clear understanding of what your current financial position is.

3.      Build a spending plan - You need to know what money is coming in and going out. Work out where you want to be spending your money, once fixed living costs taken care off.

4.     Put the right structure in place. Consider separating your spending into different accounts (ideally with different banks) and keep on top of which ones are 'fixed', 'day to day', 'lifestyle' and for 'future you'. Automate where possible, especially your debt and savings to save time and reduce stress.

5.     Review your protection. It's hard to think about, but what would happen to you and your family if you died or couldn't work due to illness? Make sure you insure the most important thing - YOU!

6.     Consider your future events. Draw your timeline on a piece of paper with 'now' at the start and '20 years' at the end. List all the events that may happen over this time, things like having more children, moving house, children going to university. Life is a series of events, some you can prepare for, others you will have to react to. Most of these events involve money.

7.      Set some priorities (the life events will help). Write down the things that you want to achieve, or do, in your life. Think about how much money you would need to make them happen and by when. What would you need to make these acheiveable, don't be limited by negative beliefs. Think I can, not I can't.

8.     Build a financial life plan taking into account your priorities and life events. If you want to make work optional how much wealth would you need to accrue? Work it back how much do you need to be investing and what returns.

9.     Work out your wealth strategy. Are your current investments fit for purpose in terms of expected returns or do you need to make changes? What are the best investment products to help you do this?

10.   Get started. Don't worry about being perfect, the key is to start taking some action. You can tweak and adapt over time, but as you work through it, you'll feel more empowered and in control.

Typically your 40s are your peak earning years and give great opportunities to build your wealth. I can help you build a financial life plan to ensure you live a great life now and in the future.

Please note that this post is guidance only not advice

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