Your 40s come with a lot of financial stress. Whether you’re putting your children through college or taking care of your aging parents, expenses add up.
But you can find stable footing with financial discipline. Wise Bread’s Dan Rafter shares two personal finance rules to follow:
Don’t let college costs derail your retirement savings
You want to help your kids pay for their college educations. That’s understandable, but don’t let your desire to help your children derail your retirement savings.
If you spend too much money helping your kids pay for college, you’ll struggle to build your retirement savings. In your 40s, saving for retirement should be your top priority, outweighing even your goals of chipping in to pay for your children’s college education.
Remember, your children have options for paying for college. They can borrow money. They can choose less expensive schools. They can seek out scholarships or attend a community college for two years. You don’t have nearly as many options when it comes to your retirement savings.