3. Splurge—Within Reason
Just because you’re making more money doesn’t give you license to get too big for your financial britches. “People often fall into this pattern in their 40s,” says Taylor. “All the other stuff is settled, and things are simpler from a financial standpoint.”
So before you take off on that three-week trip to Tahiti or embark on a pricey home renovation, make sure your financial picture is truly in tip-top shape. “I’m all about balance—savoring what you spend and enjoying life today, but also planning for tomorrow,” says Taylor. “As long as important financial goals are being met, do the remodel or take that dream vacation.”