They say life starts at 40, because that is where most complications kick in. At this age, most people are on their own and they have families that depend on them.
Most people retire at 55-60, and this is the time they discover that they too much concentrated with ‘life’ and forgot to plan for their retirement/future.
We give you a four-pointer on the best financial decisions to make before 40.
Own a home:
You cannot live in rented space all your life. It’s always good to have a place of your own that you call home. With a home, you do not have to worry about being thrown out for defaulting to pay rent.
A landlord can raise your rent whenever a lease expires – and often by as much as he pleases. Owning a home will the the perfect answer to avoiding fluctuating rent rates.
You can invest with Fanaka Real Estate ltd for land within Nairobi and its environs at affordable prices and start building your home.
Disclose any secret accounts to your spouse:
About two million Kenyans have their money idle in an account at the Central Bank of Kenya (CBK) in unclaimed assets, amounting to more than Ksh3.3 billion according to the Unclaimed Financial Assets Authority (UFAA). Only Kshs32 million has been claimed to date.
This is mostly because most of this money was held in secret accounts, or maybe family members were never informed of such money. Murphy’s Law that states, ‘Anything that can go wrong, will go wrong’ even death. Prepare yourself against the “what ifs” in life and reduce your worry around finances.
Plan for retirement:
This is the ultimate answer to avoid loans at your old age. When you start saving for retirement early, you put yourself in the best possible position to prepare for the future you want. The compounded interest alone, even on a small initial investment, has plenty of time to grow over a lifetime.
As you advance in your career and earn more money, putting a percentage of your income into your retirement nest egg is one of the best money decisions you can make!
James Dean advises, ‘dream as if you’ll live forever and live as if you’ll die today’. It is from your dreams that you will plan for the future and live for today. If you plan for ten years to come and die today you have nothing to worry about your family as they will remain stable. Start saving big, or start a business that you’ll manage even after retirement.