12 Financial Moves Women Over 40 Wish They’d Made Sooner
Managing your finances can feel overwhelming, especially as you hit your 40s and start thinking more seriously about the future. Many women find themselves wishing they had made different money choices earlier on to create more stability and confidence now.
Learning about key financial moves you can still make will help you feel more in control and prepared for what’s ahead. It’s never too late to adjust your strategy, improve your habits, and set yourself up for greater financial security.
Started tracking my credit score religiously early on
You’ll want to keep an eye on your credit score from the start. It’s not just a number; it can affect loan approvals and interest rates.
Checking it regularly helps you spot errors or issues before they become a problem. Even small changes matter.
By watching your score closely, you’ll learn how your actions impact it. This way, you can make smarter money moves faster.
Remember, credit scores are tools lenders use to assess risk, so staying on top of yours gives you control in financial decisions. For more insight, see this discussion on credit scores Credit score is a scam.
Maxed out my 401(k) contributions every year
You’ll wish you started maxing out your 401(k) contributions sooner. It’s a straightforward way to build serious savings without much extra effort. When you max out, you reduce your taxable income and benefit from compound growth over time.
Even if you begin in your 40s, consistently maxing your 401(k) can grow your nest egg significantly. With steady contributions and average market returns, you could have close to a million dollars or more by retirement. Check out how much you could accumulate by maxing out your 401(k) here.
Consulted a financial advisor sooner
You might wish you’d talked to a financial advisor earlier in life. Many women wait until their 40s or later to get professional advice, missing out on valuable guidance.
Getting help sooner can clarify your goals and create a plan tailored to your needs. It’s not just about investments—it’s about building confidence with your money.
If you’ve been hesitant, remember that advisors can help with budgeting, retirement plans, and even managing debt. Starting earlier could give you more time to grow your savings and avoid costly mistakes. Some women find it worth exploring why they wait so long to seek advice, as shown in this discussion on why many women delay working with financial advisors.
Created a solid will and updated it regularly
Having a will might not seem urgent, but it’s one of the smartest moves you can make after 40. It ensures your assets go exactly where you want and saves your loved ones from extra stress.
Updating your will regularly is just as important as creating it. Life changes—like marriage, kids, or new assets—mean your will needs to keep up.
If you haven’t started yet, don’t wait. Setting up a clear, updated will gives you peace of mind and control over your future. For more tips on financial moves women over 40 should make, see 19 Financial Moves Every Woman Over 40 Should Make Now.
Started investing in index funds in my 30s
You might wish you’d started investing in index funds earlier, but getting going in your 30s is still a smart move. Index funds offer broad market exposure with lower fees, helping your money grow steadily over time.
Starting in your 30s gives you a decent runway to benefit from compounding. Even if you didn’t jump in right away, it’s never too late to build a solid foundation.
By focusing on index funds, you avoid the stress of picking individual stocks. This simple step can set you up for more financial freedom down the line. For more thoughts on starting late, check out people that started investing late in life.
Set up an emergency fund with six months of expenses
Having an emergency fund with six months’ worth of expenses can give you real peace of mind. It’s money set aside for unexpected stuff, like car repairs or job loss, so you don’t have to scramble.
Start by calculating your basic monthly costs—rent, food, bills—and multiply that by six. Then, slowly build that fund in a separate savings account, so it’s easy to access but not tempting to spend.
If you’re just starting out, even a small emergency stash is better than nothing. Over time, aim to grow it to cover those six months and keep adding if your expenses change. This isn’t just smart—it’s a financial must-have for women in their 40s.
More tips on building an emergency fund can be found in this essential guide to building an emergency fund.
Learned to negotiate salary raises confidently
You might realize that asking for a raise isn’t as scary as it seems. It’s about stating your value clearly and backing it up with facts.
Many women avoid negotiating, which can hold back their earnings over time. Getting comfortable with this skill early can change your financial path.
Practice helps. Preparing your reasons and timing your ask right makes a big difference. You deserve to be paid what you’re worth.
If you want tips on how to negotiate salary with confidence, check out advice from experts like Tori Dunlap who focus on this topic.
Paid off credit card debt completely
You might wish you had tackled credit card debt earlier. Carrying balances can weigh on your finances and affect your credit score.
Paying off debt gives you freedom—you gain more control over your money and less stress. Some women find surprising relief and pride after clearing it all.
If you’re struggling, small steps matter. Even a plan like a “no-buy year” helped one woman pay off $19K in debt in 2023 on a modest salary. Taking action now can change your financial future.
Learn more about real strategies for paying off credit card debt here.
Took advantage of retirement catch-up contributions
Once you hit 50, you can put extra money into your 401(k) with catch-up contributions. This means you can save more than the regular limit, giving your retirement fund a nice boost.
If you missed saving earlier, catch-up contributions help you close the gap. For example, in 2024, you can add an extra $7,500 to your 401(k). Making the most of this can significantly grow your nest egg over time.
Even if you start late, consistently maxing out these contributions while earning average market returns can add up to a substantial amount by retirement. It’s worth checking with your plan to make sure you’re using this option. More details are available on catch-up contributions for older workers.
Built multiple income streams rather than relying on just a salary
Relying on a single paycheck can feel risky, especially if unexpected expenses pop up. Building multiple income streams gives you more financial stability and control.
You don’t have to be an expert to start. It could be anything from freelancing, rental income, or side gigs. Many people create extra income sources to boost savings and reduce stress.
Some have built as many as 7 to 12 income streams over time. This approach helps you avoid financial strain if one source slows down or stops. Learn more about how others have done it here.
Automated all my savings to avoid thinking about it
You’ll save more when your money moves automatically. Set up transfers to your savings or retirement accounts right after you get paid. This way, you don’t have to rely on willpower or remember to save.
Automating your savings removes the stress of deciding how much to save each month. It’s a simple habit that builds over time without you noticing.
If you want ideas on how to do this or find extra cash, you can check out tips on how to automate your savings. Making it automatic keeps your money working even when life gets busy.
Prioritized paying off my mortgage early
Paying off your mortgage early can save you a lot in interest over time. It might feel challenging at first, but even small extra payments can make a difference.
When you clear your mortgage sooner, you free up money each month for other goals. Plus, having your home fully paid off brings peace of mind.
Many women over 40 wish they had started this earlier because it reduces financial stress later on. If you want to see how much you could save, watching examples like this mortgage payoff video can be helpful.
Related: 15 Clever Hacks To Reduce That Never-Ending Grocery Bill
Managing grocery expenses can be challenging for many households, especially with rising food costs and fluctuating budgets.
However, with some creativity and resourcefulness, you can implement numerous clever hacks to reduce your never-ending grocery bill without sacrificing the quality or variety of your meals.
