How to plan your finances in your 40s

Published on: October 8th, 2021

In your 40s, you are more likely to have more debt and financial responsibility than at any other point in your life and it can be busy as a result. Your career is likely to be in full swing and you may have a hectic family life.  The right financial plans can help you navigate this time and stay on track for the future.

At Apt, we call this living for today while planning for tomorrow.  Here are some areas you can focus on, to make sure you are making the most of your money now and in the future.

Living for today….

Financial goal: Using your money to support your lifestyle You are likely to have a number of demands on your finances and much going on in your life that you need to support for – paying off your home, paying for kid’s education, renovating your home etc. so your outgoings may be the highest they will ever be in this decade.

Philanthropy: Increasing your contribution – You may continue to support causes with financial donations or even involve your children in age-appropriate fundraising events, to ensure they share your community values.

Values: Doing (some) of what you love – Although this is likely to be the busiest and most expensive time in your life, it’s also important to maintain some goals around your personal interests and make sure you can still have some fun. If you have the financial resources to make it work, outsourcing in those areas you don’t enjoy or don’t make you happy, makes a lot of sense. At Apt, we call it buying happier time.

We do this across many things in our lives, from cleaning to childcare, and for good reason – it can save significant time, tends to lead to more quality time with loved ones and in many cases, makes financial sense too.  It something more and more Australians are considering when it comes to their finances too.

The right financial planner will support your family’s long and short-term goals and apply expert knowledge and experience, so you can continue protecting and growing your assets, while spending more time doing what you love.

…planning for tomorrow

Financial goal: Setting up future income streams – As retirement is now on the 15–20-year horizon, now is the time to think about how you will develop and maintain future income streams from your investments.

Super: Taking a more active role – While your forties isn’t quite the time to pull back to a defensive super strategy, you should be taking greater interest in your superannuation and ensuring it is structured to weather financial storms.

Protecting your (family’s) future: Making your estate plans – In your forties, it’s important to make sure you have the right estate plans in place.  You’ve likely started to accumulate assets and it’s important to know that they will be distributed to your loved ones if something were to happen to you.

Read Next:  How to plan your finances in your 50s

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.