40s and 50s

It is a known fact that people in their 40s and 50s are vulnerable to unemployment. So, when I came across this article HERE, I sent the link to The Daughter and stressed to her the need to be prudent for the next 2 decades so as to build up enough reserves to weather a possible retrenchment when she reaches her 40s and 50s. I was talking of 2 types of prudence...

- Financial Prudence

- Skills Prudence

Financial Prudence would HOPEFULLY help her hit Stage 7 of the 10 Stages of Wealth pictured below. Skills Prudence would HOPEFULLY ensure that whether anyone will give her a job, she would be able to stay employable, and contribute gainfully to society.

People in their 40s and their 50s are typically the most stressed. Parents are now aged and dependent. Children have not quite grown up and so, are still dependent. Beyond the financial strain on resources, children and aged parents consume time and emotional energy. People age the most between 40 to 60, from stress.

If enough steps are taken in the 20s and 30s to lay a strong foundation of financial and skills resources, the 40s and the 50s can be fulfilling years and a person can stay youthful through these 2 decades simply by keeping stress at bay.

I wanted to lend The Daughter my hindsight, which would be for her, foresight.

So, I stressed to The Daughter the need to be frugal, the need to invest and use money to make money. In my experience, it really doesn't matter if you make $2 million a year if you spend $2.5 million. The person who made $100,000 a year (whilst spending $50,000) would still be in a better financial shape at age 40.

In the 20s and 30s, it makes sense to put aside savings FIRST and spend what is left, than to spend FIRST and save what is left. Happily, The Daughter takes my advice to heart and ever since Covid19 sent global share markets into wild swings, she has been actively building her share portfolio...

- Disney

- DBS

- VOO

- Carnival Cruise Line

This is another fear of mine put to rest. The Daughter knows how to look after herself financially.