Part 4/7:
- Become Debt-Free: Aim to eliminate all debts except potentially your mortgage before hitting 40.
The 40s: Refinancing Your Focus
Entering your 40s, the median net worth typically sits around $76,000. This decade involves preparing for retirement while still managing expenses associated with kids and housing.
Focus on a net worth target of at least $385,000 to ideally over $600,000.
Essential Goals for Your 40s:
Retirement Planning: Know your desired retirement lifestyle and work backwards to determine saving goals.
Account for Major Expenses: Prioritize home payments or education funds, focusing on retirement savings.
Pay Off Your Mortgage: Strive to eliminate this significant long-term debt by 50.