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Smarts buys and investments to make in your 40s

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Are you reaping the rewards yet?

Life tends to diversify for many people in their 40s. For some it’s all about family life, for others it could be a new business venture, a new relationship, the end of old relationships or moving up the career ladder. Wherever you are in this picture, the need for proactive financial planning still applies and that includes looking at investment options like a business for a secure financial future.

Smart buys

Property. If you don’t yet have a roof over your head this is the time to do it or if you do own your own home, investing in property as a business venture could be a smart buy in your 40s. Most experts agree that buying property, whether for your own use or to rent out, is a smart choice – though like any investment seek independent advice.

Budgeting software. One of the smartest moves to make in your 40s is to keep your spending in check. Even if you haven’t been that successful up until now, this is the decade in which the balance between what comes in and what goes out really matters. Using software can provide an objective perspective on what you really do with your money – this kind of enlightenment can help you to cut out bad money habits for good.


Optimum savings. During your 40s your earnings are likely to be peaking so this is the right time to ramp up the amounts that you’re putting aside for the future. Tax free ISAs, high interest savings accounts that lock in your cash and online savings present the best chance of a good return – even with interest rates at their current historic low.

Your kids’ future. You may already have started putting money aside for university tuition fees and property deposits for your kids – or you may not. In the decade that will represent the best opportunity to earn for most of us, this is a great time to start setting aside essential cash for the future of the next generation. However, a word of warning – providing for your children’s education and future should never come at the expense of your retirement. If you don’t yet have retirement finance in place then start with that. Your children have another 50 years of earning power, you don’t.

Risk factors

Debt. Everything is a priority at this stage in life, from family holidays that you will treasure forever, to providing the your child with their first car. However, taking on new debt in your 40s can be risky. Unless you know that you can clear the debt before you want to retire you could be creating a situation in which you have to keep postponing retirement so you can service these new debts. Debt management is key to your future, insofar as how you manage your debt. There is good debt and bad debt and knowing the difference is a must to get ahead financially.

Life. 40 Somethings can have a tough time of it – from illness, to redundancy, divorce and bad investments there’s a lot that can start to go wrong in this decade. Protect yourself with financially with cash savings, smart investment and insurance choices and the right healthcare cover; then all you have to do is deal challenges as they happen.

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