We’ve all made mistakes with money from time to time. However, some of those mistakes can be not only costly in our 40s but could cost you money year after year after. And that’s why today, we’ll be looking at five money traps to avoid in your 40s.
Huge Taxes
The biggest money trap most average people falling into is in paying a lot of taxes. I understand that people are conditioned to believe that if you live in the United States, Canada, Australia, or Ireland, the tax rates are just supposed to be high. Perhaps because they feel it’s the price that you pay for civilization.
These people mostly don’t go to Dubai, Malaysia or other countries or run through the world where the roads are beautiful; things are glistering, with skyscrapers and so on because they think that giving a certain percentage of their money away on such trips won’t help them. In reality, that’s quite the opposite. If you’re in your 40s and making tons of money in the United States, the best option for you is to create an overseas visit because staying put in the country will levy heavy taxes on you that you could have used in doing something better for yourself and family.
Lack of Planning
A good number of people in their 40s don’t exactly know where their money is going. As such, they don’t know what the purpose of their money is. So to avoid finding yourself in this position during your 40s, have some resemblance of a budget. And how do you do this? Sit down every week or month and make a comprehensive list that says precisely what you’re going to spend on food or precisely what you’re going to spend on movie tickets. In other words, always live within your means.
When you’re living in a place like the United States, especially in places like California, you’ve got to be a lot more conscientious about where your money is going. Like, you need to attach an assignment to you of knowing each dollar that comes in, see where that money is going, and be aware of it because it’s so easy to let money slip away from you.
Intentionality
Here, there are questions like Are you working intentionally? Are you doing things intentionally? are you making money deliberately? Or are you spending money intentionally?
There’s a lot of new investment ideas that are currently available online right now, ranging from crowdfunding to real estate deals, these platforms present us with an enthusiastic and an adrenalin rush offers that sometimes like impossible to resist. For instance, some agreement could guarantee a $5000 reward or profit in just a span of weeks, and most people, especially those in their 40s, tend to fall victim to this.
Don’t get me wrong; I’m not saying some of these deals don’t pan out, they do, however, most don’t and is often because we make those investments intentionally out of our selfish interest. So if you’re in your 40s, next time you see such offers, take the time out to study it before making any investment no matter how small or big it may look.
Expensive Social Lifestyle
This point takes us back to the high tax piece. How many people in their 40s do say well, all my friends live in this one place, so I’m going do what’s right for me and correct for my money because I want to do what everyone else isn’t doing. How many people, to be honest, can say that to themselves?
It’s kind of like if you live in a place where everyone has a nice car you’re going to buy a nice car too. You don’t have to fall into that trap as it won’t only drain you financially through the high taxes you’d be paying for those assets, but will also go a long way to affecting you psychologically when you can’t meet up anymore. So, to avoid falling into this money trap, don’t try to raise your social standards to fit into your social environment.
Overspending On Your Kids
Yes, it’s everyman’s dream to spend on his kids, especially when he is approaching his retirement days, perhaps during the late 40s. And with such a rush, we’d love to provide our kids with the latest gadgets, clothes, cars and so on. The thing is, while this may sound all fun and in reality, tend to bring some level of temporary satisfaction into the family, such act invariably causes more harm than good. Remember, those kids do have their education ahead of them, and so, it won’t be wise to spend all your money in spoiling them. All at the expense of their college degree ahead of them. Education is better than those luxuries, and also better than leaving your pockets run dry. So there you have it, five significant money traps to avoid in your 40s. If you’re in your 40s or know someone who is, I’d recommend you share this article with them so they also won’t have to fall into this trap that most