Financial Tips for Your 40s

Financial Tips for Your 40s

By the time you reach your 40s, you may feel like you have your finances in order. You may have a house, a 401(k), a college savings account for your child, and a career. But you still have some time to go until retirement, and other, more immediate needs may pop up as you move further into this decade, such as caring for aging parents and addressing unexpected health issues.

Your 40s are a time to reassess your goals and ensure you remain headed in the right direction. Successful money management for 40-year-olds often focuses on your unique position in the “sandwich generation” — caring for your children and your parents. Look over our financial tips for 40-somethings and see how you can put these tips to work for you and your family.

financial tips for your 40s

Learn How to Say “No”

As you age, you make more money — and people will want you to share your good fortune. You’ll find people asking you for donations toward charity, co-workers’ birthday gifts, school fundraisers, and more. Many of them are worthy causes you may be happy to support, but you don’t have to say yes to everything. Turn down the rest with a polite “no, thank you.”

Protect Your Retirement Fund

Many people change jobs in their 40s. If you do, be sure to talk to a financial advisor about your options for your 401(k). You may face penalties or be required to pay fees if you choose to cash it out. This could cost you in the long run. Find out if there’s a way to roll your money over without penalties.

Help Your Children Get Ahead

One key aspect of parenting is passing knowledge on to your children. They may be ready to head off to college soon, and you want them to be prepared to take care of their own finances. Be sure to discuss money management concepts such as:

  • Setting a budget
  • Saving for expensive items
  • Doing taxes

Don’t Worry About Keeping Up with Others

You should let go of any attempts to compete with friends and neighbors over who has the nicest material things. You won’t gain anything by having the best car or the most expensive house. Plus, that type of mentality can lead you to pile up debt.

Start Planning Seriously for Your Future

Have you come up with a vision for your retirement? You should begin to explore those options. You’ll want to know how much you’ll need to save to achieve your goals. Talk to an advisor to see if you’re on the right path, and if not, start making changes to get where you need to be.

Use these financial tips to keep yourself on track throughout your 40s. For more financial tips by age, check out the full infographic here.

The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal or other professional if you have questions.