Reach the next steps on your financial journey as you enter into your 50s.
Turning 50 often brings about a powerful realization: this is your time. For those who find themselves single in their 50s, it can be the perfect moment to take charge and build a strong financial foundation. Whether you’re newly single, happily independent, or anywhere in between, financial wellness plays a key role in making the most of this stage. Here’s how you can flourish financially in your 50s and beyond.
1. Understand Your Cash Flow and Plan Ahead
In your 50s, having a clear picture of your cash flow is critical. Track your income and expenses using tools like MoneySmart’s Budget Planner or an app that keeps all your finances in one place. With a clear snapshot, you can identify areas where you may want to save more, invest, or indulge. Setting up an emergency fund is crucial too—consider having enough set aside to cover three to six months of living expenses for added peace of mind.
2. Rethink Your Super and Retirement Plans
Your superannuation is a key asset, and it’s wise to consider the options for growing it further. Many people at this stage add extra contributions to their super, either through salary sacrifice or after-tax contributions. Not only can this boost your retirement balance, but it also has potential tax benefits. Check in with your super fund about strategies to maximize your returns, or use MoneySmart’s Superannuation Calculator to see how even small contributions can add up significantly over time.
3. Consider Downsizing or Relocating
Being single can bring more flexibility in choosing where to live. If your current home no longer suits your lifestyle, downsizing might be an option to free up capital and reduce living costs. For many, relocating to a less expensive area, or even a country location, offers financial freedom and an enriched lifestyle. Before making a move, explore your options, and get an understanding of local property markets using tools like Domain’s Property Appraisal to assess how much your current home is worth.
4. Build a Strong Investment Strategy
Building wealth isn’t only about saving—it’s also about growing what you already have. Investing doesn’t need to be complicated; a balanced approach can make a big difference. If you’re new to investing, starting with resources that break down the basics can be a great first step. Websites like Vanguard Australia’s Education Centre or ASX Education offer foundational knowledge to help you get started.
For those who prefer hands-off investing, you might consider exchange-traded funds (ETFs), which offer a diversified investment with lower fees. However, always make sure to consult a financial adviser to determine what fits best with your risk tolerance and goals.
5. Embrace a Financially Independent Mindset
Flourishing financially is not only about numbers. Developing a healthy money mindset is just as essential. Financial independence comes from making confident and informed decisions, as well as understanding what financial success looks like for you. Are you aiming to travel more, support family, or donate to causes you care about? Clearly defining your goals can guide your choices and keep you motivated.
Being over 50 and single can be the perfect opportunity to set a financial path that reflects your unique vision. With thoughtful planning and an empowered approach, there’s no limit to what you can achieve. Remember, every small step builds toward a flourishing future.
And as you enter your silver years, here are The Five Best Things to Know About Money When You’re Over 50. And for more love tips, here is our guide for How to Think About Money in New Relationships over 50.