Smart Money Moves to Make in Your 40s

Optimize and Accelerate

Your 40s are your financial power decade. You’re likely earning more, feeling the pressure to save more, and juggling responsibilities like aging parents, kids—or both. Now’s the time to refine your financial plan and make intentional moves that will carry you into retirement with confidence.

🎯 Your Goals in Your 40s

• Maximize earnings potential
  These may be your peak earning years—don’t let them pass without negotiating raises, exploring promotions, or adding income streams.
• Get aggressive with retirement savings
  If you’re behind, this is the time to catch up. Aim to save 15–25% of your income, using both regular and catch-up contributions to 401(k)s and IRAs.
• Refine your financial plan
  Whether you’re ahead of schedule or playing catch-up, your 40s are the time for a serious financial check-in to recalibrate goals, investments, and spending.

💸 Key Money Moves in Your 40s

1. Track Your Net Worth Every Year

Measuring your net worth gives you a clear view of your financial progress—and helps you course-correct if needed.

👉 Read:

• Why Your Net Worth Explodes After $100,000
• Emergency Fund Basics: How Much You Actually Need
• Where to Park Your Emergency Fund

2. Max Out Your Retirement Contribution

Between 401(k)s, IRAs, and catch-up contributions (starting at age 50), now is the time to turbocharge retirement savings.

👉 Read:

• Roth IRA vs. 401(k): Where to Start When You’re Young
• Grow Your Wealth from $50 to $1 Million

3. Re-evaluate Your Investment Strategy

You’re closer to retirement, so it’s time to adjust your asset allocation for your timeline—without playing it too safe.

👉 Read:

• A 3-Fund Portfolio by Age Group: A Simple Strategy for All Stages
• How to Keep Learning About Investing (Without Getting Overwhelmed)

4. Catch Up If You’re Behind

Behind on retirement? You’re not alone—and it’s not too late. Focus on increasing contributions, automating savings, and optimizing tax-advantaged accounts.

👉 Read: How to Catch Up If You Got a Late Start Saving for Retirement

5. Start or Revisit College Savings

If you have children, college costs are looming. Now’s the time to plan.

👉 Read: How to Save for College Without Derailing Your Retirement

6. Review Your Estate Plan

Update your will, beneficiaries, healthcare directives, and power of attorney. Life changes in your 40s often mean your estate plan should, too.

👉 Read: Estate Planning Basics: What You Need to Know

7. Reassess Insurance Coverage

Make sure you have the right level of life, disability, and long-term care insurance for your family and income.

👉 Read: Life Insurance 101: What You Need (and Don’t) in Your 40s

8. Avoid Lifestyle Creep

As income increases, so can spending. Don’t let bigger paychecks turn into bigger bills—let them boost your savings instead.

👉 Read: How to Avoid Lifestyle Inflation and Build Wealth Instead

9. Revisit Your Budget and Goals

A lot has changed since your 20s and 30s. Rework your budget to reflect your current priorities and future plans.

👉 Read:

• The 50/30/20 Budgeting Rule for Financial Success
• How to Set Financial Goals in Your 30s (That Actually Stick) (Still highly relevant in your 40s)

10. Do a Full Financial Midlife Check-In

It’s time for a big-picture look at everything—investments, savings, insurance, debt, and future goals.

👉 Read: The Financial Midlife Check-In: Are You on Track?

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📋 40s Wealth Checklist

1. 🧮 Net worth reviewed annually
2. 💼 Retirement contributions maxed out (plus catch-up if 50+)
3. 📊 Investment strategy adjusted for timeline
4. 🔁 Catch-up plan in motion if behind
5. 🎓 College savings plan established
6. 📜 Estate plan and beneficiaries updated
7. 🛡️ Insurance coverage evaluated
8. 🚫 Lifestyle creep avoided
9. 🧾 Budget and goals reviewed
10. 📋 Full financial check-in scheduled