When you reach your 40th birthday, you may assume that you are still young to save money for the future. After all, you still have 25 years before retirement. You think you can still wait until you are 50 years old and aggressively start saving for your retirement years.

You may have money in the bank right now but these are just enough for a little vacation which you are planning to use in a few years. You may tend to believe you can starts saving for the future later.

But consider the financial situation the country is in right now. The sub-prime mortgage crisis may have already passed but its effect is still felt until today. The fuel prices may already have stabilized but they are going to stay within the $4.00 a gallon mark. Added to that problem is the rising cost of products as well as sporadic job losses.

You may think that you are not affected by this since you are already in an established company set to retire at the appointed time. You salary is not that much but it is more than enough to get you through. But think about effect of the current situation to the near future specifically, 10 years after. The prices of things maybe higher- a lot higher than you think especially with the fuel prices are very unstable. 10 years ago we never though that one gallon of fuel will reach the $4.00 mark.

No one should think twice in saving money. The urgency of saving some funds for the future is even more important when you are in your 40s for two reasons:

1. You are at the best shape of your life – Your kids are already out of college or have their own lives, you are already close in paying your house and job is very stable with a steady income.

2. This is the last chance to be really easy on your savings – If you wait 10 years more, you will be scrambling for ways to save money for the future. Instead of taking the easy way of saving money, you will be on extreme budgeting just to make sure you have a good retirement fund when you reach 65 years old.

Here are some smart ways on how you can save money for the future.

1. Be simple – At 40 years old, the things that you need in life is not that much compared when you were just 20 years of age. Two decades ago, you need so many things in life that you have collected things that you don’t need them anymore. Dispose them as soon as possible. You can use them as a start-up fund for your small savings.

2. Aim to pay your debts as soon as possible – Because you spend less and earn more, it’s the right time to pay for all those debts. Check with your real estate agent if you can accelerate your payment without devastating penalties. Minimize your use of credit cards since the interest rates will just cost you and could place a dent on your savings.

3. Dispose the things that you don’t need – That means you have to discard everything unnecessary. It could be a small garage sale or it could be an extra car that you do not need. You can dispose them by selling or giving them to your kids.

4. Leave things behind – Unfortunately, we cannot leave forever so we cannot stand by our properties. Prepare the things that you would most likely leave behind and be sure it will be taken cared of by the next generation.

There is no better time to save money than being at 40 years old. Your financial situation should have enough finances to help you save for the future.