8 Money Moves That Will Have a Huge Impact on Your Life Decades From Now
Written by
Jordan Rosenfeld
Edited by
Kristen Mae
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The financial decisions you make today don’t just affect your current budget — they shape your future. Whether you’re saving, investing or planning for retirement, the right money moves can set you up for long-term success.
Here are eight money moves to build a solid financial foundation now that will have ripple effects for years to come.
1. Start Early With Strategic Financial Planning
Kelly Ann Winget, founder and CEO of Alternative Wealth Partners (AWP), says that if you want to see an impact on your finances decades down the road, the first step is to build a solid financial foundation. “Ensure you’re comfortably covering your expenses, have a robust emergency fund, and eliminate any high-interest debt,” she said.
Once you have that foundation, shift your focus to the long term. Even small, early investments can grow substantially over time thanks to compound interest. “The earlier you start,” Winget said, “the more time your money has to grow.”
2. Prioritize Tax-Efficient Investing
When you invest, choose accounts that align with your current and future tax brackets, said Mindy Yu, a certified investment management analyst and director of investing at Betterment at Work.
Making the right choices now can make a massive difference in the long run. “Roth IRAs, Roth 401(k)s, and Health Savings Accounts, or HSAs, all offer tax-free withdrawals in retirement, allowing you to keep more of what you’ve saved,” Yu said.
3. Build an Emergency Fund
It’s also important to have liquid funds available for emergencies so you can leave your invested funds to grow, Yu said.
Building an emergency fund with three to six months’ worth of living expenses in a high-yield savings account provides a safety net for short-term financial shocks and protects your long-term investments.
Then, when unexpected expenses occur, “you won’t be forced to dip into your 401(k) or sell stocks at a loss,” she added.
4. Diversify Your Portfolio
It’s good to invest, but it’s even better to diversify your investments to hedge against market downturns and make sure you’re neither over- nor under-invested in any one asset, Winget said.
“While traditional investments like stocks and bonds are important, relying solely on them may not be enough in today’s volatile market,” she said.
She recommends looking into real estate, private equity and even precious metals for added diversification.
“If you diversify early, you’ll be better positioned to weather financial storms,” Winget said.
5. Protect Your Future Through Estate Planning
Winget also pointed out that your beneficiaries will be grateful to you if you engage in some estate planning.
“Setting up trusts, an estate plan, or a holding company can also protect your assets from being heavily taxed upon your death.”
You may also wish to obtain a life insurance policy to provide an additional financial cushion for your heirs.
6. Live Below Your Means
One of the simplest yet most impactful financial strategies over time is to live within — or below — your means, said Melissa Murphy Pavone, founder at Mindful Financial Partners.
This doesn’t mean depriving yourself but rather making intentional choices about spending.
“When you consistently spend less than you earn, you create opportunities to save and invest more, accelerating your financial growth,” she said.
7. Monitor and Adjust Your Plan
Financial planning is not a one-time activity; it requires regular monitoring and adjustments to remain effective, said Janelle Sallenave, chief spending officer at Chime.
“Things like getting a raise or running into an unexpected expense may warrant adjusting your goals temporarily or permanently,” she said. “So it’s important to adapt your financial plan as you experience different life changes.”
8. Practice Patience and Discipline
Managing your finances is a long-term commitment. Winget notes that markets will go up and down, income may ebb and flow, but staying the course with your investment strategy is key.
“Avoid the temptation to panic-sell during downturns or chase quick gains during booms. Consistent investing, combined with a disciplined approach, will pay off in the long run,” she said.
Set yourself up for success by automating your savings and investments to ensure you’re contributing regularly, and revisit your strategy periodically to adjust for life changes or shifts in the market.
Looking to build a legacy? Check out our Life to Legacy guide for expert advice and smart moves you can make today.
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