Rich at any age: In your 40s
MoneySense, David Hodges
On track with your mortgage? Well, now’s not the time to get house lust and buy a bigger home. “You may feel like you deserve it, but ask yourself, ‘Is that reasonable?’ It’s a trap if you’re not looking further into the future,” says Hallett. Keeping up with bigger house payments could cause you to lose focus on all your other goals—and you may never catch up. Bottom line: match your home to your needs, and not your status.
Also keep in mind that it’s around your 40s that couples start divorcing and have to divide their assets. Or you may be dealing with aging parents who require help. “Unfortunately things don’t always roll along merrily,” says Cynthia Kett, a principal at Stewart & Kett Financial Advisors in Toronto. “That can create a lot of financial pressure.”