How To Pivot Your Career To Build Wealth in Your 40s, According to Ramit Sethi

©Ramit Sethi

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Your 40s are an interesting decade. You’re about halfway through your career and halfway through your life. So it’s no wonder people tend to take stock of where they are. Sometimes this leads to the realization that you need to make a change if you want the rest of your life to look different.

Ramit Sethi, personal finance guru and creator of the “I Will Teach You To Be Rich” program, shared some advice in a YouTube video for people in their 40s who want to build wealth. Below is what he said will help you build wealth and set yourself up for the future.

Turbo Charge Your Career

Sethi recommended taking a good look at where you are in your career and evaluating whether you could be in a better place. And he had some solid advice about how to get there.

“You know, you have all the information you would ever need to land a higher-paying job,” Sethi said. “You have that information right now. Have you ever wondered why you are not doing it? It’s not because you’re overwhelmed. It’s because deep down we have these hidden fears that affect the way we make decisions. In order to improve our careers, we have to confront these fears head-on.”

These fears include the fear that you’re too old to “start over,” that you don’t have the right education or that you have to start a side hustle. Sethi disabused these fears.

“You are not starting from scratch,” he said. “You have experience. Everything you’ve done in your career up until this point can help you, even if you are looking to pivot to a totally different career.”

Face your fears. “Write down those three biggest fears stopping you. Sometimes, there is power in getting them out of your head and on paper. And then, next to each one, write the worst-case scenario and then what you would do if that happened,” Sethi added. You’re likely to find that even the worst-case scenario isn’t insurmountable.

Use the Three Seasons Lens

Sethi recommended looking at your career as three parts or seasons, as he called them. “Growth. This is where you maximize income, build your skills and climb fast. You’re young, maybe 20s or 30s. You’re getting started. You’re gaining momentum. Let’s call this spring,” he said.

“In this case, you might be a little further down the line. Maybe you’re 30s or 40s. You’ve built up some expertise. You’re starting to reap some of the rewards. We can think of this like summer and reinvention. You’re ready for a change, a new industry, role or lifestyle. We can think of this like summer or reinvention,” Sethi explained.

“If you’re getting to your 40s and you’re feeling that nagging sense of, “is this it?” No, that doesn’t mean you’re in winter. I think it means you’re ready for a second spring. That actually will help you be selective about the type of jobs that you’re going to pursue,” he added.

Identify Your Experience

Now that you’ve recognized that you have amassed significant experience in your early career, it’s time to name that experience.

“Ask yourself questions like this. What problems do I love solving? What kind of people do I like to work with? What kind of lifestyle do I want now and three years from now? Notice the questions are positive, not negative. I don’t really care what you don’t like. I want to know what you do like,” Sethi said.

Create Better Positioning

“You need to learn how to talk about yourself better.” Sethi explained. He recommended answering the question “tell me about yourself” in such a way that will help you get a job offer. Talk about the problems you solve better than anybody else.

“This might be your edge and you should make sure that your edge is clear to hiring managers, anyone looking at your resume and interviewers,” he said. “Try something like this: ‘In my last role, I collaborated cross-functionally with marketing, design and engineering teams to launch Product X two weeks ahead of schedule.'” Sethi also recommended avoiding buzzwords and getting specific.

Define Your Edge

Sethi said to write down a sentence about the thing you are better at solving than anyone else. Don’t be humble — Sethi encouraged bragging during this exercise. If it’s three or four sentences, that’s even better.

Work Your Network

Sethi said a good network is where you’ll find a good job. He had tips for how to approach your network when you’re thinking of making a change.

“The best jobs are not posted online. In fact, the higher up you go, the less likely you will find the perfect job on Indeed or LinkedIn,” he said. “A lot of jobs come from referrals, conversations, reputations. And this is where that network that everybody talks about can actually be a huge asset to you.”

You don’t have to have gone to an Ivy League college or have worked for a huge corporation in your industry. You still have a network. But don’t wait until you want to get a new job to start using it. Build those connections now. Here’s how Sethi recommended doing that.

“I want you to make a list of 10 people in your network that you respect. Don’t ask them for a job. Just reach out and say, ‘Hey, I’m looking to make a shift in my career. Can I get your perspective on how I am positioning myself?'” He recommended that you are clear and concise and respect their time.

Send them a concise summary of what you’re looking for, describe that “edge” you defined earlier and add a few roles or companies you’re targeting.

Sethi gave this example: “I’m looking for a senior sales role where I can build strong client relationships, hit and exceed my revenue targets and grow a high-performing team. I have consistently exceeded my quota. I recently hit 135% of target and I have a background in B2B and DTC sales with a focus on client retention. I’m focused on roles like account executive, sales manager or strategic partnerships lead at growth stage startups, SaaS companies or consumer bands that are obsessed with customers.”

Then, ask if they’d be comfortable introducing you to someone in their network who may be able to help. Or, if you see they are connected to someone who works at a company you’re targeting, ask for that introduction directly. Sethi said this approach is far more targeted and specific than the generic, “I’m looking for a job. Can I send you my resume?”

Hone Your Interview Skills

Once you’ve identified your edge, identified your network and started reaching out for connections, you’re already set up to be a strong candidate. Perhaps even more importantly, you’ve been perfecting your interview skills even if you don’t know it.

“In your 40s, your job is to walk in, own the room and say, ‘Here’s what I’ve done. Here’s what I can do for you. And here’s how I’ll do it,'” Sethi said.

Be ready for common interview questions like, “tell me about yourself,” “why do you want to work here?” and “tell me about your last role.” Be specific and communicate your edge. Show that you have researched the company and the role and have specific answers that relate not only to your experience but to the role the company is trying to fill. Practice your answers until you can deliver them smoothly. You want to communicate confidence and that comes with practice.

Negotiate Compensation That Will Help You Build Wealth

When it comes to negotiating salary in your 40s, Sethi is blunt. “At this point in your life, you cannot afford to play small,” he said. He also recommended the “briefcase technique.”

First, research how much people in the role make. Then, show the specific results you will deliver in the first 90 days. And then ask for what you want with confidence. This might also take practice, especially if you’re uncomfortable talking about money, which many people are.

By following these steps, you can improve your position and increase your wealth in your 40s. It’s a prime time in your life to do this and it’s going to get harder the longer you wait. But right now, as Sethi said, you’re not too old and it’s not too late.

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