As Sam Smith sang it so eloquently a decade ago: ‘I don’t have money on my mind.’ But, as it turns out, he seems to be quite the minority. Midlifers definitely have money on their mind, as evidenced by the number of questions we receive at Midlife Crossroads Academy about financial planning. Midlife is all about transitions—whether it’s a career change, kids leaving home, or considering a smaller living space. So it’s only normal that people start getting more serious about their financial future. If that’s not you (yet), don’t stress—it’s never too late to take control.
Financial planning isn’t just about making sure you have enough money to retire; it’s about ensuring that you can live comfortably and confidently no matter what life throws at you. Because it’s such a common question, I’ve decided to dedicate this blog post to it even though it’s not an easy topic. There’s no single answer to the question ‘how do I plan for my financial future?’, and the responses often vary depending on which country you’re from.
What I would recommend is to consider the following:
- Assess your finances Start by getting a clear picture of your current financial situation. What’s your income, from all different sources? What savings and investments do you have? How much debt are you carrying? Knowing where you stand is key to making informed decisions.
- Set clear goals Think about both short-term (1-5 years) and long-term (5+ years) goals. In the next few years, do you want to pay off debt, build an emergency fund, or save for a big trip? For the longer term, are you planning for retirement or your kids’ education? Be specific and make sure your goals are SMART—Specific, Measurable, Achievable, Relevant, and Time-bound.
- Diversify your investments When it comes to investing, don’t put all your money in one place. Stocks and ETFs offer high returns but come with risk, while bonds are safer but slower to grow. Real estate can provide rental income and long-term appreciation, but it requires more hands-on management. The key is to diversify—spread your investments across different areas to minimize risk and maximize potential gains.
- Don’t forget estate planning It’s not the most exciting topic, but estate planning is crucial. Make sure you have a will, and consider whether a trust might be useful. Don’t forget to update your beneficiary designations on retirement accounts and life insurance policies. They’re little details, but they ensure your assets will be distributed according to your wishes and help avoid legal complications for your family.
- Consider a financial advisor If managing your finances feels overwhelming, a financial advisor can help. Look for someone with the right qualifications, experience in the area where you need help (retirement planning, investment strategies or estate planning), and fee structure for your needs. A good advisor can provide tailored advice, keep you on track with your goals, and offer strategies for overcoming obstacles.
This is far from a complete list, it’s only a start. But hopefully it will get you started on financial planning. Just keep in mind that you’re looking to make smart, steady decisions that set you up for a secure future.
