5 financial goals to achieve before age 40
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In our society, age 40 is considered one of life’s most significant turning points. There was a time when the prevailing idea was that a person would have their own apartment or house by age 40, have money saved in the bank, and be completely settled in their career.
However, over time, a major change has occurred in that perception. Due to the continuous increase in the cost of living, frequent job changes, the high prices of flats or houses, and the uncertain job market in the current era, those traditional calculations no longer hold true.
According to experts, real financial success today means more than just a figure in a bank balance; instead, it involves building a solid financial foundation capable of surviving any crisis.
Particularly, the period before reaching one’s 40s is the most suitable time for building long-term wealth. Financial experts believe it is extremely urgent for every professional to achieve at least five financial goals before completing 40 years of age.
First, ensure a 6 to 12-month emergency fund. Since no one can predict when danger will strike in life, at least 6 to 12 months’ worth of expenses should be kept separately so that the standard of living does not decline in the event of a sudden job loss, physical illness, or a business slump.
For example, if your family spends Tk 50,000 per month, you should have at least Tk 3-6 lakh taka in your emergency fund. This money must be kept in a place where it can be used immediately in times of trouble; in this case, an easily withdrawable DPS or liquid fund can be a good alternative.
Second, start investing today without waiting for the right time. Many people wait for the right time or a suitable opportunity to invest in the stock market or funds, which is a very wrong idea.
Experts advise that instead of waiting for the perfect moment, one should start small, regular investments immediately, such as an SIP or savings certificates. Starting to invest between the ages of 20 and 30 allows for the maximum benefits of compound interest.
A person who invests Tk 5,000 per month at age 25 will receive a much higher return than someone who begins saving Tk 10,000 per month at age 35.
Third, do not consider insurance or coverage as a useless expense. While many of us insure expensive mobile phones or cars, we often do not get any insurance for our own lives or health. It is essential to ensure suitable health insurance and term life insurance for oneself and one’s family before reaching age 40.
Insurance acts as a shield so that a sudden major illness or hospital bill does not wipe out a lifetime of hard-earned savings. Income protection insurance is also becoming quite popular in the current market to manage the risk of losing a job.
