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15 Signs You’re Doing Well Financially When You're Over 40

Use these practical signs to measure your financial success after 40.

By Stacy Garrels

Edited by Laura Ratliff

Updated Dec. 17, 2024

Life after 40 comes with unique financial pressures — career plateaus, planning for retirement, and raising kids can all feel overwhelming. Some 40-somethings are even still shelling out for daycare.

But the good news? Financial success at this stage isn’t about perfection. It’s about steady progress, smart money management, and reflecting on how far you’ve come. After all, you’re probably not eating ramen for dinner and sleeping on futons anymore.

If you’re hitting some of these financial milestones below, you’re likely doing better than you think.

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You’re consistently contributing to retirement savings

Whether it’s a 401(k), IRA, or another investment plan, you regularly set aside money for your future self.

Hopefully, you’re maximizing the employer-match contribution since it’s essentially free money — bonus points if you know your plan’s vesting schedule and contribution rate.

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You’re paying catch-up contributions

Once you hit 50, you can make extra contributions to your retirement accounts. If you’re taking advantage of these catch-up contributions, congrats. You’re supercharging your savings to set yourself up for an extra-cozy retirement.

You have an emergency fund

Unexpected expenses are among life’s biggest headaches. Having a rainy day fund with three to six months’ worth of living expenses means you’re prepared to weather just about any storm without relying on credit cards or other high-interest loans.

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With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

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Your debt is manageable

Financial stability doesn’t require being completely debt-free, but it does mean keeping your debt under control — especially credit card bills.

Whether you’re paying down charge cards or steadily chipping away at a mortgage, you know how much you owe, have a plan to pay it off, and are making consistent progress.

You’re following a budget

Budgeting isn’t about restriction — it’s about intention. If you understand where your money goes each month, you can adjust your spending where needed and be in a solid position to reach your long-term financial goals.

You’re on track with major financial goals

Whether it’s paying off your home, saving for a dream vacation, or funding your child’s college, you have significant goals and track your progress toward them.

Such measurable progress shows you’ve mastered the art of long-term planning — and the discipline to save money.

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You can afford an occasional luxury without stress

Luxury is a subjective term. Maybe it’s a chocolate croissant and a fancy coffee since you usually just drink Keurig at home. Or perhaps it’s going to the spa for a pedicure.

Life’s little extra pleasures are within reach for you, and you can enjoy such indulgences worry-free because you know your overall budget is in solid shape.

You have a good credit score

A strong credit score opens doors to lower interest rates, better financial opportunities, and, in some instances, more employment opportunities. If your score is in great shape, it’s one clear sign of responsible money management.

You have a plan for claiming Social Security benefits

Whether you plan to claim Social Security at 62, wait until full retirement age, or delay until 70 for maximum benefits, having a clear strategy is a crucial step in your long-term financial planning.

If you can delay claiming benefits until age 70 or have another strategy worked out, you’re likely in great financial shape.

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This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 4.00% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>

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SoFi has no account or overdraft fees⁵ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $2 million on deposits is available through a seamless network of participating banks.⁶ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a> Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a>

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You’re working with a financial planner

Guidance from a professional can help you refine your goals, adjust your investment portfolio, and keep you on track for a comfortable retirement. If you’ve partnered with a planner for expert guidance, you’re giving yourself an edge.

You’ve got the right blend of insurance

From life insurance to disability and health insurance, proper coverage ensures you’re prepared for worst-case scenarios.

Protecting your income and assets is an excellent indicator of financial stability, especially if you only take out the coverage you need and look for blanket (multi-purpose) policies that can cover more than one scenario.

Your mortgage is paid off

For some, holding a mortgage may be a deliberate move for tax benefits. But for many, paying off the mortgage is the ultimate financial milestone.

Without a monthly housing payment, you have more freedom to save, invest, and enjoy life’s experiences.

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You have an estate plan

Having an estate plan doesn’t mean you’re old or worrying about dying. It means you’re a wise money manager and want peace of mind.

An estate plan ensures your assets and belongings are distributed according to your wishes and that you can bequeath financial security to your next of kin.

You live below your means

You’ve mastered the art of minimalism and know that sometimes, less is more. You spend less than you earn, which is one of the simplest yet most impactful things you can do for your finances.

If you consistently save and avoid lifestyle creep, you’re likely in excellent financial health and setting a solid example for your kids to follow.

Your kids are set up for financial success

Whether contributing to a 529 plan, teaching them about investing, or ensuring they know about higher-interest savings options, you’re making smart money moves for your kids and talking to them about finances.

Equipping your kids with this know-how sets them up to thrive financially.

Bottom line

By your 40s, financial stability isn’t about being debt-free and having everything figured out — it’s about knowing your priorities and goals and making steady progress.

If any of these signs of financial success resonate with you, congrats. You’ve made some smart money moves.

If some areas are still a work in progress, it’s not too late to adjust your strategy to correct any financial mistakes. The best decisions you can make today are ones that set you up for a better tomorrow.

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