Money Moves and Investment Every Woman Needs by 40

I’ve been 40 years old for five months and honestly, I am just starting to invest better and make strategic money moves that I wish I had known about when I was fresh out of college, I’d be a millionaire by now – but yet, here we are still learning about High Yield Saving Accounts, the different IRAs, and my favorite, using my credit card points to get free travel and upgrades. 

I know this is nothing new but these are things that aren’t necessarily taught. FInancial experts like Suze Osman and Tori Dunlap have done a phenomenal job of highlighting the importance of financial literacy yet there are still thousands of women, like me, peaking 40 or older who are just now coming to terms that our money can grow outside that standard savings account.

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The Best Money Moves Every Woman Should Make by 40

Robyn Little of The Little Tax Co. stresses the importance of having an emergency fund set in place. “This should be around six months’ worth of your living expenses (rent, car payment, insurance, food, and more). This is to protect you if you lose a job, have an emergency, go through a divorce or have any crazy life changes.” she explains. And with today’s economy, she’s absolutely right. “If you wait until you’re over the age of 40, job transitions are often slower and the process takes longer, so you need to make sure you have a financial cushion to hold you over while seeking employment.”

Little adds that women need to make wise investments. “At the age of 40 or more, you should have proper retirement accounts set in place. This includes 401K, IRA and Roth IRA accounts. Aside from that, you should look into investments that help you accumulate real wealth. This includes cryptocurrency, real estate, stocks, and more. For example, the price of Bitcoin has gone up by $80,000 since 2022. And will continue to rise as it becomes accepted by financial institutions across the world.”

Building Wealth That Lasts: Why Property and Legacy Planning Matter

For women with families and children, Nikki Taylor of Italy Property Consulting, encourages women to familiarize themselves with the concept of generational wealth. “Whether you are single or have multiple children, as you reach the age of 40 you really should think about what legacy you want to create for your future generations. Some choose to invest in luxury fashion or gold pieces, while others invest in property, or rare pieces of art. The assets you accumulate now will be passed on and help lessen the financial burden for your relatives later on. Again, this could mean passing down a legacy to your own children, or nieces and nephews, cousins or other relatives. It looks different for everyone but the concept should be top of mind.”

Also, for women who are looking to start a family or may already have a family of their own, Jessica (Clancy) Strawn MA, RDN recommends buying a house and shares:

5 Reasons Women Should Consider Homeownership

1. Interest Rates fluctuate over time. Currently, they may be a bit high, making it a less ideal time to buy. However, if you’ve been building your credit, you can secure a lower interest rate, potentially saving thousands over the life of your loan. Even if you buy when rates are high, refinancing later—when rates decrease—can help lower your monthly payments.

2. Loan Terms Matter Most. Home loans span 15 or 30 years. Delaying your purchase could make it harder to pay off the loan before retirement, potentially impacting your financial stability later in life.
3. Saving for Retirement. The sooner you buy and pay off a home, the sooner you can redirect your mortgage payments toward retirement savings, securing your future.
4. Housing Prices Rise. The cost of homes tends to increase due to inflation, tariffs, and taxes. A house purchased 17 years ago was likely far cheaper than one today. Buying sooner allows you to lock in a price before costs rise further.
5. Long-Term Security Life is unpredictable—health concerns, family changes, and financial shifts can all impact stability. Owning a home ensures that, no matter what happens, you have a place to live without the uncertainty of fluctuating rent or housing costs. 

Maximize Your Money: Credit Card Perks & Portfolio Power

My personal favorite is having a credit card that offers travel points and is Jessica (Clancy) Strawn MA, RDN favorite too! She suggested these three things: 

1. Apply for a credit card and use it for expenses, ensuring that you pay the full balance each month. This prevents interest charges and helps build a strong credit history,
2. Opt for a card from a well-established institution, and 
3. Keep your credit utilization below 30%. This demonstrates financial discipline and the ability to cover essential living expenses—such as housing, food, and transportation—without exceeding your budget.

How do these credit card points pay off? 

“I’ve had one (travel credit card) since my twenties and have used it to travel extensively. My family of four once flew to Hawaii for just $54.” says Strawn. I personally have used my points for free upgrades and am able to apply my points to my tickets, allowing me to save significantly. Honestly, this is the only way I am able to travel first-class roundtrip for $200 when I am on a budget. 

Last but not least (and the tried & true saying), don’t put all of your eggs in one basket – diversify your portfolio. “By the age of 40, women should be thinking outside of the box and have a few revenue streams in place.” shares Taylor. “With the current economy and retirement/pension income being very volatile, opening yourself up to creating multiple income streams gives you that extra peace of mind with regards to your future.”