3 ways to prevent a midlife crisis turning into a financial crisis
When a midlife crisis hits it is important not to let it turn into a financial crisis by spending all your money on things you shouldn’t. Discover three ways to prevent a financial crisis in this article.
You may think that you are immune to having a midlife crisis but once you reach your late 30s, there is a good chance that you will start to compare what you have accomplished in life with the achievements of those around. Unfortunately, we tend to compare ourselves more with those who are more successful or worse, with unachievable ideals of what life should look like. For many, a midlife crisis causes a drastic change in behaviour that often includes unwise financial decisions.
In this article, you will discover three ways to prevent a midlife crisis from becoming a personal financial crisis.
Purchasing a sports car is usually a costly affair.
1. Don’t buy the sports car, rent one instead
The stereotype type of a man hitting 35 and buying a sports car to feel young again is a stereotype for a reason. Many men who go through a midlife crisis want to experience the thrills they felt when they were younger so they purchase a fast car or a motorcycle to get that rush.
Purchasing a sports car is usually a costly affair and should be avoided. While it may be fun to drive around for awhile, it will not be very practical for cross-country family car trips and you will most likely end up selling it at a loss once you realise that.
If you have to roll down the street in a sports car to soothe your midlife crisis pain, just rent one on the weekends or for when you are out and about with your mates.
You will most likely have a financial plan in place that involves your retirement investment strategy, a personal savings plan, your children’s university fund, etc.
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If you find yourself in a midlife crisis, make sure you continue to stick to your financial plan. If you are off spending money on things you normally wouldn’t spend on, that is ok. As long as you are still able to stick to your financial plan and are putting the money aside each month you have committed to.
3. Change your life in non-costly ways
If you want to make changes in your life because you feel like it hasn’t turned out the way you imagined it would then make changes that will not hurt your wallet too much.
For example, joining the gym and training five times a week to get that body you’ve always wanted will not break the bank. Neither will going on occasional high adrenaline-filled adventures with your friends such as bungee jumping and white water rafting.
Remember that your midlife crisis won’t last forever. So, be careful about how much you spend in the moment as your life will continue once your midlife crisis has passed and for that, you will need your finances to be in order.
This information is provided by DPN Pty Ltd ABN: 94 630 700 186, Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and a related entity of DPN Pty Ltd. Casa Capace Operations Pty Ltd ABN: 79 624 981 184, NDIS provider Number 4050038018 trading as Casa Capace.