Instead of spending their 50s getting ahead on the mortgage, some indulge in the luxuries they have missed out on over the years, ignoring the opportunity to get ahead on mortgage payments.
Frugality when things were tight makes way for expensive cars, travel, household items and jewellery.
It’s important to have an end plan in mind for how you will be debt-free by retirement. Without careful planning during this time, this goal may not be achieved.
Once the kids are older, some parents continue to support them well into their 20s and even 30s.
While it’s nice to have the kids around and to be able to help them out, whether it’s to buy a house or put them through university, this can be a drain on your own finances.
Know when enough is enough and draw the line when it is reasonable to do so. Giving away large chunks of money for a deposit on a home or covering living expenses once your kids are earning money, may not be a wise choice financially.
Throughout your working life you should have the right insurances in place to ensure loan repayments and basic living costs can continue to be made if things don’t go to plan.
At key milestones like when you take out a home, car or personal loan, you may be offered insurance cover that will ensure that payments are made if the unexpected happens.
Take the time to think carefully about what your backup plan would be and review your current insurances. If it makes sense to take out insurance offered with the loan take advantage of it.
Take professional advice on the question of whether insurance cover is advisable.
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