Thus far we’ve talked about financial advice for your 20s and 30s. Going into your 40s doesn’t really change the advice from the previous two decades. You should still continue to do ALL of those things. But, your 40s bring another twist to the game and here’s where you have to sit down and figure out what’s best for you. In your 40s you fall into what I’ve written about before as the sandwich generation.

Let’s talk some tips to help you through this difficult time.

# 1 – Just Breathe

This is a period of life that can be very overwhelming for a lot of people, so I felt it was important to start with this tip. Take a deep breath, sit down, and consider a course of action. Break it down into baby steps so it does not feel so overwhelming to you.

# 2 – Retirement, Retirement, Retirement

This must be your number one goal, regardless of the other things going on in your life. You are the only person you can rely on when retirement comes around, so be sure you’re taking care of yourself!

• Maximize your contributions with your employer if you have not already done so

• Consider opening other tax-sheltered investments

• Re-evaluate your previous retirement plan to ensure that you are on track

• Become more involved in your investments, be proactive as opposed to reactive

# 3 – It’s Time to Think About College

You may have kids going into college around this time. If this wasn’t something you prepared for, don’t feel too bad. While we’d all like to provide for our kids, the fact is, they can get student loans. There is no such thing as retirement loans. Still, there are other ways you can contribute to your child’s education.

• You could budget for books since this is a big expense and would be a huge help

• Car insurance and/or rent payments are nice to have covered while in school

Just be sure that whatever you decide to help your college-bound kid with, you do so within your means. You can’t afford to be taking on any additional debt at this point in your life if you can avoid it.

# 4 – Taking Care of Aging Parents

As I mentioned, in your 40s you hit the ’sandwich generation.’ You may have parents that can no longer take care of themselves, so your options are to do so yourself or consider a nursing home. Either option can be costly and stressful for you. The best thing to do is to consider what you can reasonably afford in supplement to what your parents hopefully have, and what you can reasonably contribute time-wise. You have a job and a family depending on you, so remember those obligations as you consider your parents’ situation.

# 5 – Control the Spending, Now and Forever

If you haven’t licked this particular problem, then now’s the time to do so. You cannot afford to let your spending get out of control in your 40s or you risk spending the rest of your life working in order to keep up with your consumerism habits. Nip it in the bud, finish off any remaining non-mortgage debt, and make a plan for paying off the mortgage.

What other advice can you think of for those in their 40s? Is there anything maybe you struggled with at this stage in your life?

Related posts:

1. Financial Maxims: In Your 50s
2. Financial Maxims: In Your 30s
3. Financial Maxims: In Your 20s
4. Are You Among the Sandwich Generation?
5. What are your top Financial Concerns?