Your 40s arrive faster than you expect. The financial decisions you make before hitting that milestone shape decades of security or struggle ahead. Here are five moves worth completing now.
**Max out retirement contributions.** If you earn $66,000 or more annually, increase your 401(k) contributions to the $23,500 annual limit for 2024. Those catch-up contributions at age 50 exist precisely because many people delay this step. Your twenties and thirties compound at rates your forties cannot match. If your employer offers matching funds, capture every dollar. That free money disappears if you don't claim it.
**Build a dedicated emergency fund.** Three to six months of living expenses sits in a separate high-yield savings account earning 4.5% to 5.0% APY at banks like Marcus, Ally, or American Express Personal Savings. This prevents retirement raid raids when the car breaks or the job ends.
**Eliminate high-interest debt.** Credit card balances at 18-24% APY drain your future faster than any market decline. Attack these aggressively. Mortgages and student loans under 6% offer less urgency, but high-interest credit card debt demands immediate action.
**Review and boost your insurance.** Term life insurance costs pennies when you're 35 but rises sharply at 45. A $500,000 policy through Term4Sale or PolicyGenius runs roughly $30 monthly for a healthy 35-year-old. Disability insurance replaces 60-70% of income if you cannot work. Many employers offer this cheaply. Grab it.
**Stress-test your retirement math.** Run your numbers on a calculator like Vanguard's retirement income calculator or Fidelity's retirement planner. Aim for a savings rate reaching 15-