According to Wikipedia, midlife is from age 45 to 65 years. Going by that definition, the UK’s middle-aged population continues to expand annually. And at this life stage, most people first get diagnosed with an illness, are twice likely to commit suicide, or face profound money problems. Additionally, as they face financial hardship, some are unable to stick to their budgets. This article will discuss some common pitfalls in midlife and how you can avoid them.
- Failing to pay up or manage debts
The worst thing you can do during midlife is to fail to plan for debts you accrued over the years. The unpleasant thing about debts is the gradual piling up of figures which finally hit a value you cannot pay from your savings. Most likely, you will have financial institutions bombarding you with calls and email reminders to pay up what you owe.
The best you can do at this point is to avail yourself and not prolong the inevitable. Fortunately, some agencies can help you to draw up a repayment plan from now on. The only step you need to take is to contact them first. In some cases, the worst scenario is to declare bankruptcy, but that comes with its conditions peculiar to the UK. If it doesn’t come to that, you may be advised to start paying off high-interest debts before handling others.
- Failing to plan for contingencies
Ill health, disability, fire, natural disasters, accidents, and other things of the sort are realities in life. When they happen, you have no option but to attend to them. More often than not, it requires plenty of finances to wade through these unfortunate events. This is why insurance is a necessary financial decision to take, especially in your midlife. It cushions you from the vulnerabilities suffered from the total loss of property and other valuable assets. If you haven’t yet considered the benefits, maybe it’s time to look for a company like One Sure insurance to see what package you can get.
- Tight on money but refusing to downsize your large home
You’re fortunate to own a house already, paid off your mortgage, and have adult children who moved out of the nest. However, for some reason, you’re hard up and in serious need of money. What would you do? All things being equal, your current four or five-bedroom house can be your ticket if you plan right. Downsizing your house indicates your current situation and your commitment to resolving it the best way possible.
It doesn’t make sense that you have a goldmine yet cannot recognise what it could do for you. Continuing to live in a large property means your overheads continue to hit the roof, and that may not augur well for your financial future. Admittedly, sometimes it is the sentimental value of letting go of the home your kids grew up in.
This emotional attachment is what makes it all the more difficult. The best way to handle it is to focus or consider the better good for your finances.
The midlife stage can be a period of enhanced financial empowerment as long as you take the proper steps for yourself. Hopefully, you will seek immediate help to plan your midlife appropriately.