Thread by @cheruiyotkb

The #Fourth Decade

Your 20s are carefree and you walk with a springy gait thinking the whole world worships you.

The 30s come with additional responsibilities - career & family - and figuring out how to juggle them.

Your 40s have a clearer direction of where you want to go. >>

You realize that lessons learnt early in your youth must be implemented. You have a different level of risk appetite. You are conservative - can no longer stomach the roller coaster of speculative stocks or forex swings. Simple treasury bonds or fixed deposits are your thing. >>

You also know that money mistakes would be devastating now unlike in your 20s. Retirement is probably 15 years away. Whatever your situation, a single source of income is like standing on a financial quicksand - unless you are a big shot CEO with millions in monthly income. >>

You need to develop a plan to get an additional source of income. You may decide to be a part time consultant, sit in a board or write on your specialty. You have school going children, loans and mortgages, etc. All these must be financed. Extra income must be earned. >>

Gone are the 30s when you accumulated pieces of land here and there. If none of them is generating income, you should sell a few and develop those in strategic locations. Your investments have to do more than just sit idle. Your own businesses should operate in your absence. >>

Your 40s are the golden ages of passive income growth. You are no longer physically fit to run around in active businesses. You should be able to afford holidays as your enterprises run professionally, or investments [stocks, bonds, rental, etc] earn more than salary income. >>

Pay off short term debts like credit cards, mobile/app loans, car loans, mortgages, etc. Buy stuff with cash as much as possible. Save and invest more. Use your best earning years to use credit access to accumulate investments instead of buying things that make you poorer. >>

Get comprehensive medical cover. This will protect your investments in case of a life threatening illness. Life insurance is not a luxury either. Your children need to be educated. Protect your valuables. Look into home or domestic insurance too. >>

Lastly, build your social networks. You are busy chasing money but after this tour of personal duty, you will return to a community that may not recognize you. Leverage on your money, experiences and knowledge to give back. Contribute to social causes and earn a valued status. |<