Hey, John Crestani here and I'm not 40 yet, but I'm gonna go over 13 financial mistakes you want to avoid in your 40s and I'm gonna give you my little solutions on that. I feel like an old soul though I'm only 36 but I feel a lot older. So hopefully this is relevant to all y'all in the audience, let's go.
The first financial mistake is no plan, right? No plan of what you're doing with your money. Now, in your 40s, you're going to be at the height of your earning potential income potential, your income, you know, traditionally, it's the highest of any decade you'll be at, even though wealth is higher as you get older in the 50s and 60s, but your incomes the highest and that's gonna cause changes, right? You might be motivated to you know, spend money on a car or you know, like a new house or upgrade some things but, you know, the reality is, is you need to have a plan around these things.
Now, iron probably more than most people in their, you know, 40s but, you know, from my experience, you know, I feel like I lead and I've led an accelerated life, I don't know why but, you know, I'm just very active or energetic or whatever, but my plan is basically my life I live, you know, you hear I have a business making over half a million a month, but I live off of 20 grand a month, that's my salary, quote, unquote, and if my business does, you know, makes profits does then at the end of the year, I just put that all into investment accounts. And that's been my plan.
Okay, and so far it's worked you know, like you know, other people in my life have said, you know, John spent more money you know, like I've had I won't name names, but you know, I just I just don't feel the need I'd rather be set for life and you know, then save the piano then try to chase you know, the dragon now the other mistake folks make is not having any what we call liquidity.
Q: What is the financial mistake that should be avoided in your 40s?
A: Financial mistakes to avoid in your 40s include not having a financial plan, lacking liquidity in financial planning, and neglecting the importance of emergency funds.
Q: Why is having a financial plan important in your 40s?
A: Having a financial plan in your 40s is crucial because it helps you make informed decisions about your money, especially when you are likely at the peak of your earning potential. It ensures that you allocate resources wisely and prepare for future financial goals.
Q: What is the significance of liquidity in financial planning?
A: Liquidity in financial planning is important as it ensures you have access to funds when needed, especially during emergencies. It provides financial stability and flexibility in managing unforeseen expenses or opportunities.
Q: Why are emergency funds important in financial planning?
A: Emergency funds are vital in financial planning as they act as a safety net during unexpected situations such as job loss, medical emergencies, or major repairs. They help avoid falling into debt and provide peace of mind knowing you have a financial cushion.
