9 Money Goals To Hit by Age 40, According to George Kamel

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Turning 40 is often regarded as a major milestone. For many, it symbolizes the end of an era. The days of partying are long over (the curtain may have fallen on those once you hit 30), and, ideally, you’re more strongly centered in a sense of self. You know who you are better than ever before, and you’re well established and thriving. 

But even if you’re feeling great about turning 40, you may feel an urge to look at the list of all the things you’d hoped to accomplish by this age, and laser focus on the things that just didn’t happen. Such thinking can be unproductive and self-defeating, but there’s something to be said for a checklist of goals to mark off. Financial expert George Kamel recently posted a video on his YouTube channel wherein he discussed the nine money goals you should hit by the age of 40. 

You’re Free of Debt

If you’re still carrying loads of debt — specifically that of the high-interest nature that comes with credit cards, it’s time to reprioritize. You can’t build wealth while being buried in consumer debt. 

“When you have to send chunks of your income out the door every month to make those debt payments, it’s going to be pretty hard to make progress with your money,” Kamel said. 

You Have an Ample Emergency Fund 

Having an emergency fund is crucial, because unexpected costs will occur, and you never know when they’ll strike. You could lose your job, get hit with a medical bill your healthcare provider won’t cover or need a new car part. The list goes on. If you don’t have a cushy emergency fund by the time you turn 40, that’s a red flag that you’re going in the wrong direction. 

“Honestly, you should reach this goal way earlier,” Kamel said. “But the reality is, a lot of people don’t.” Kamel went on to explain that if you don’t have an emergency fund, surprise expenses can derail your financial life. 

“I recommend having three to six months worth of expenses tucked away somewhere in a high yield savings account,” Kamel said. 

You Own a Home  

This is a tough goal to hit. The cost of a home in the U.S. is ticking up and, for many, swinging a down payment and qualifying for an affordable mortgage just isn’t feasible. Nevertheless, Kamel counts homeownership as a goal you should achieve before turning 40. 

“I know this is not going to be a goal for everyone,” Kamel said. “But in my opinion, it’s a good goal to have. But don’t feel bad if you’re 40 and still renting. That might make sense if you’re in an ultra-high cost-of-living area like San Francisco or New York City.” 

You’re Investing For Retirement 

It’s never too early to begin investing for retirement, but, alas, it can be too late — if you want a comfortable retirement, that is. By the time you turn 40, you should have a solid retirement investment strategy in place. 

“I recommend investing 15% of your income in tax advantage retirement accounts like your company 401(k) or a Roth IRA,” Kamel said. “But only after you’re debt-free and you have that fully funded emergency fund.” 

You’re Investing For Your Kids’ College 

This one only applies to people who have or will have kids. Kamel recommended that, by the age of 40, parents have started investing in their kids’ college fund — even if they’re still babies (in fact, the earlier, the better). 

“I recommend doing this with a 529 Plan or an education savings account,” Kamel said. “These accounts act sort of like a Roth IRA, but for your kids’ education expenses.” 

You’re Growing in Your Career 

By the time you turn 40, it’s financially best for you to be moving in an upward trajectory at work. You have a clear sense of where you’re going and what opportunities are around the corner. 

“By the time you’re 40, you’re probably more than 15 years into your career,” Kamel said. “So you should not be where you were in your mid-20s. You’re hopefully making more money as you’ve grown professionally. If not, you might want to consider some serious changes.”

You’re Making Extra Mortgage Payments 

As you round the corner to 40, you should be in such a financially solid position, that you’re able to make extra mortgage payments. 

“There are people who will tell you not to worry about paying off your mortgage early because it’s ‘cheap debt,'” Kamel said. “But the way I see it, a mortgage is like diarrhea. As soon as you get it, hopefully, you want it gone ASAP. Here’s why: If you pay off your mortgage early, you can save tens of thousands of dollars in interest payments — maybe even hundreds of thousands of dollars.” 

You’re Investing In Your Hobbies and Passions 

This one may come as a surprise: investing in your hobbies and passions by the time you turn 40. It’s a goal to aim to hit, in Kamel’s opinion. 

“When you’re 40, you’ll likely be making more money than you ever have,” Kamel said. “So you should have some more margin to spend on your hobbies and passions.” 

You’re Giving Generously 

The concept of charitable giving is one you should always be embracing — even if you don’t have much wealth to speak of. But by the time you’re 40, and you’re in a more financially secure position than ever before, charitable giving should be priority. 

“It’s important to be generous,” Kamel said. “Give a little until you can give a lot. A good baseline is to give 10% of your income no matter where you are in your financial journey — even when you have debt.” 

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