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How You Can Better Manage Your Finances in Your 40s

The saying that “life begins at 40” rings true for some more than others. Your 20s to 30s are what likely shaped you to be what you are today, and you’ll be carrying everything that you learned until your 40s and beyond. 

However, your 40s are likely to be more complex – especially your financial affairs. Thankfully, however, it’s never too late to start planning out how your finances will be managed in such years if you haven’t already done so. Plus, regular updates to your financial plan will only help you to better manage your money and prepare you for success. 

So, how can you manage your finances in your 40s? We listed down several methods. Read on below to learn more.

#1 – Get Organised

Getting your money organised is a common – yet vague – goal for many individuals and couples in their 40s. 

But this means something different to everyone so it’s worth understanding what organisation means to you. Maybe a budget? Or saving an emergency fund? Or starting to plan for retirement?

Your financial plans should accommodate your current life stage so consider how you can be more organised.

With this in mind, your financial plan might cover wealth accumulation and preservation tactics, such as growing investments and getting insurance. As you grow older, you must adjust how your finances are spent.

#2 – Pay Off Your Mortgage 

In your 40s, you are likely towards the middle or end of your mortgage which can feel like an uphill battle. But now is the perfect time to create financial strategies and strict budgets so you can pay it off quicker and take one step closer to financial freedom.

When you think about it, your 40s should be the beginning of financial freedom and stability, and you should only be dealing with a single non-deductible debt. 

If you have a mortgage, there are some ways that you may be able to pay it off faster. These include:

  • Consolidating your debt
  • Finding a loan with great rates
  • Making extra repayments
  • Using a mortgage offset account

#3 – Engage in Budgeting

Budgeting is necessary to be financially secure. With any luck, you have probably obtained enough money in your 40s that allows you to budget your finances easily despite having more pressing priorities. 

Ensure that you have a budget that will accommodate you for a specific period, such as daily living costs, loan repayments, and any holidays or hobbies you want to take part in. 

For long-term periods though, you should have emergency funds that you’ll only touch when needed.

#4 – Grow Your Wealth

Investments are one way to create and grow wealth. However, they do all come with a level of risk, which is why you should always study the ins and outs of whatever you’re investing in. 

These investments can provide you with retirement funds before the superannuation preservation period, which is the time when you can finally access those funds.

Growing your wealth is always easier said than done. In places like Australia, where there are constantly changing superannuation rules, it can be hard to manage your investments alone.

Seek Advice from a Financial Planner

Navigating your finances through your 40s can be a daunting thought, but careful planning will help you push through and achieve your financial goals. If you’re unsure where to start or what the best steps to take are, you can always talk to a financial planner. 

Financial stability shouldn’t be impossible— and with the right guidance, it doesn’t have to be!

Leo Wealth can help you when it comes to managing your finances in your 40s. Our financial consultants are well-equipped with the knowledge and expertise so that you can better plan for your financial matters. Contact us today for a complimentary consultation!



This article was written by Lochlan Stuhne-Scott, Authorised Representative (AR) of Leo Wealth, which is a Corporate Authorised Representative (CAR) of HNW Planning.