Your 40s are a powerful decade financially—but they can also be a turning point.
You’re likely earning more than ever before… but also juggling more responsibilities, bigger expenses, and the pressure to “get it right” before retirement.
Here’s the truth most people don’t say:
It’s not just about how much you make—it’s about avoiding the mistakes that quietly keep you stuck.
In this post, you’ll learn the 5 biggest money mistakes women make in their 40s—and exactly how to fix them so you can build real wealth and finally feel in control of your financial future.
Sometimes the biggest financial glow-up doesn’t come from making more money—it comes from fixing what’s quietly holding you back.
Fix The Money Mistakes That Are Holding You Back in Your 40s
We are at such at advantage in our 40s – we have a lot of life lessons under our belt, we have been able to increase our income, we don’t feel the need to show off to others and we are ready for more.
Let’s make sure we are making the most of what we currently have.
1. Underinvesting
Many women in their 40s are incredible savers… but hesitant investors.
You might be:
- Keeping too much money in savings
- Avoiding investing because it feels overwhelming
- Not knowing where to start
The problem? Your money isn’t growing the way it should.
How to fix it:
- Decrease the amount your saving and put it toward investing
- Start or increase contributions to retirement accounts (401(k), Roth IRA)
- Invest consistently—even small amounts add up
- Use simple index funds instead of overcomplicating things
- Automate everything so you don’t have to think about it (this is what I have done)
We have a lot of things to focus on right now so if we can automate our finances, we are going to free up time AND put ourselves in a better financial position.
👉 One of the easiest ways to start is by using a free financial tool like Empower (this is what I personally use). It lets you track your net worth, investments, and spending all in one place so you can actually see your progress—which is a huge mindset shift.
If you haven’t automated your investing, this is your sign to start.
2. Lifestyle Inflation
As your income increases, your lifestyle tends to increase right along with it.
Nicer clothes. Better vacations. Upgraded everything.
And while you absolutely deserve to enjoy your life, this is one of the fastest ways to stay financially stuck—no matter how much you earn.
How to fix it:
- Increase your savings/investing rate every time your income goes up
- Be intentional about upgrades (not automatic)
- Cut or swap expenses that don’t truly add value
👉 A simple place to start? Look at your monthly bills.
For example, one simple thing I did was to switch to a lower-cost phone plan, Mint Mobile. I pay $20/month, but they even have a $15/month plan. This saves you hundreds per year with zero lifestyle downgrade.
If you are getting a raise, put that raise directly toward your investments, or at least do 50/50, half investing, half toward a trip.
Are the upgrades you’re choosing really upgrading your life or are they just making it more expensive.
Maybe you thought you’d love your ring doorbell, but maybe the monthly subscription isn’t really worth it and just having a camera outside will provide the peace of mind you need.
If you haven’t seen your investments compound as much, take a look at where you’ve increased your spending and decide if it’s really worth it to you.
Small changes like this free up more money to invest—which is where the real growth happens.
3. Not Planning for Retirement
Retirement feels far away… until it suddenly doesn’t.
And many women avoid planning because:
- They feel behind
- They don’t know their numbers
- They assume they’ll “figure it out later”
But clarity is everything.
How to fix it:
- Figure out your retirement number (even a rough estimate is powerful)
- Max out employer matches
- Increase contributions over time
- Track everything in one place
A simple place to start is taking your annual expenses and multiplying that number by 25. That amount would be the amount you need to have invested in order to retire.
For example, if your expenses are $40,000/year, $40,000 * 25 = $1,000,000. That’s the amount you would need invested to retire. Don’t forget to subtract out any passive income you may already have.
I have rental properties, so I would subtract out the yearly rental income I receive from my annual expenses number and that’s the amount I would need to have invested.
Don’t forget to increase your investments and your income increases.
👉 And, again, this is where Empower becomes incredibly valuable. You can see your retirement accounts, projections, and overall financial picture without logging into 10 different platforms.
The more clarity you have, the more confident you’ll feel.
4. Not Building Multiple Income Streams
Relying on one income source is risky—no matter how stable it feels.
If that income disappears, slows down, or caps out… your growth stops too.
How to fix it:
- Start a side hustle (even something small)
- Build an online income stream
- Publish a book
- Explore affiliate income (this is how I monetize my blog)
- Invest in income-producing assets (stock market, real estate, other businesses)
👉 If you want a deeper dive into this, check out this blog post:
The Financial Independence Plan for Single Women in Their 40s
Now this being said, it’s important to not spread ourselves too thin. If we need to spend more time on something that is really going to bring in a lot more money, then great. Once that money is coming in, get it invested, then we can move to the next thing.
Improving our skillset is definitely a great place to focus our efforts. If do happen to lose our job, we know our skills will help us get another one or go out on our own.
If you’re curious what sources of income I have, here they are:
- Rental Income
- Roommate Income
- Stock Market Investments
- Royalties
- Ad Revenue (from YouTube)
- Affiliate Income
- Amazon Commission (Onsite and Offsite)
- Creator Connections (from the Amazon Influencer program)
- Brand Deals
- Meta Monetization
- Coaching
- Selling Products Sellers Have Sent Me
- Courses (currently on pause)
There’s so many options out there, don’t feel limited, every little bit helps.
Multiple streams don’t just increase income—they create freedom.
5. Avoiding Money Conversations
This is one of the most overlooked (and expensive) mistakes.
Avoiding conversations about money can look like:
- Not negotiating your salary
- Avoiding asking for a raise
- Not setting financial boundaries
- Keeping money “private” out of fear or discomfort
This can cost you thousands over time.
How to fix it:
- Practice asking for what you’re worth
- Start having open, honest conversations about money
- Educate yourself so you feel confident
- Set clear financial expectations in relationships
Seriously, this is such a huge mistake. The more we talk about money, the more educated we become, the more we can learn from others and the more we can improve our financial situation.
Being a financial coach and being in the financial space for many years, I’ve noticed people are lot more comfortable talking to me about money.
I get friends telling me they opened their Roth IRA, they got their 401k company match, they decided not to buy the shirt, they automated their savings, and the list goes on and on.
And I absolutely love it! I love celebrating with people when they improve their money habits. I love being the one they come to so someone can be proud of their money decision. I love being able to answer their money questions.
I wish we all would be more open about money. It’s not about shame or feeling dumb, it’s about genuinely wanting to know how to improve financially and celebrating when we do!
Money is something that will be with us the rest of our lives (here on earth at least), the sooner we can manage it better, the sooner we will become financially free.
Final Thoughts
Your 40s are not too late—they’re actually one of the best times to take control of your money.
You don’t need to do everything perfectly.
You just need to start paying attention to what’s holding you back—and fix it step by step.
Small shifts now can completely change your financial future for the better.
If you loved this, you’ll love these blog posts too:
- The Financial Independence Plan for Single Women in Their 40s
- How To Design Your Dream Life in Your 40s (Even If You’re Starting Over)
- The 40s Glow-Up: 15 Ways to Upgrade Your Life This Decade
- How I Switched From 9–5 to Running My Own Business (and Hit $5K Months)
