3 financial goals I’m trying to achieve by age 40

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Their achievement can help prepare me for a secure future.


the main points

  • Reaching the age of forty is a major life milestone.
  • Setting financial goals to achieve at age 40 will help prepare me for a secure future.
  • My goals relate to saving for retirement and investing for my children’s future.

In January 2023, I will celebrate my 40th birthday.

Before I reach this milestone, there are some key financial goals that I hope to achieve. I set these goals because I believe achieving them will help me have more financial security in later years – and I set age 40 as a target deadline because I know I’m more likely to achieve my goals when I have a time limit to do so.

So, what goals am I aiming for by next year? These are the three big goals I set for myself.

1. Save four times your annual income

The biggest and most challenging goal you’ve set has to do with retirement savings. Specifically, I aim to have four times the annual income in my IRA at my favorite brokerage firm by my 40th birthday.

This is above what most experts recommend. In fact, the general rule of thumb is to save roughly three times your annual income by 40. But because I want to retire early and because I’m self-employed, so I don’t have employer 401(k) contributions to count toward, I set a more aggressive goal.

By reaching this milestone, I will ensure that I am on the right path to building the nest egg I need for a safer future. Saving for retirement is one of the most important financial goals everyone should set because it is not possible to live comfortably on Social Security benefits alone. Having a generous retirement investment account will ensure that I will have no trouble paying bills late in life once I am no longer able to work.

2. Investing in my children’s education

Building my own retirement nest is my number one goal, and I’ve prioritized it over college money for my kids. There’s a simple reason for this: You can’t borrow to fund retirement, and financial shortfalls are harder to overcome later in life than when you were young and just starting out.

But while I focus on retirement savings, I also know that paying college for two kids is going to be expensive and I want to be able to help my kids with that burden. I have started 529 accounts for each of my children and my goal is to have several thousand dollars in each account by the time I reach 40.

Since I’m an older parent and my kids will be in college by the time I’m ready to quit work, it’s really important for me to achieve this goal so that I can have enough money to help them even if I’m no longer getting a paycheck .

3. An emergency fund with living expenses for a year

Finally, I set a goal of increasing my emergency fund to cover living expenses for a year. I’ve been slowly building this chest over time, but I want to hit the 40 mark for several reasons. I know that health issues are more likely to develop as I get older, and I also know that my house is getting older and more costly surprise expenses are likely to appear.

Now, these are just my financial goals based on where I stand in my life as I hit middle age – but it’s often a good idea for most people to tie their financial goals to specific ages or other deadlines. Having a timeline and milestone to work toward can make it more likely that you’ll achieve the things you want.

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