# 5 Money Moves to Make Before You Turn 40
Your 40th birthday offers a natural checkpoint to reset your financial life. The years leading up to it determine whether you arrive at that milestone with momentum or regret. Here are the moves that matter most.
**Max out retirement savings.** If you haven't already, contribute the maximum allowed to your 401(k) or IRA before age 40. For 2024, that means $23,500 for a 401(k) and $7,000 for a traditional or Roth IRA. Compound growth accelerates in your 40s. A dollar saved at 35 grows differently than one saved at 50. If your employer offers matching, capture every dollar. That's free money.
**Eliminate high-interest debt.** Credit card balances at 18 percent to 22 percent rates drain your wealth faster than any investment grows it. Prioritize paying down cards before your 40s. A $10,000 balance at 20 percent costs you $167 monthly in interest alone. Redirect that payment toward retirement savings instead.
**Review and boost your emergency fund.** Most financial experts recommend three to six months of living expenses in a liquid savings account. Check your number. If you have dependents or an unstable income, lean toward six months. A high-yield savings account at banks like Marcus or Ally currently offers around 4.0 to 4.5 percent annual return. That beats inflation while keeping money accessible.
**Reassess your insurance coverage.** At 40, your life looks different than it did at 30. Review your health, life, disability, and homeowners or renters policies. Term life insurance becomes more expensive each year. Locking in a 20 or 30-year term now costs far less than