Next up is a question from David. After a life reset at 35 and now starting to have kids at 40, how should I take in the age-related lessons and content that you create? Should I listen to the earlier years of advice? I’m in the messy middle, but I’m 40, and I want to make sure I’m not too far behind and that I’m consuming the content as I should. Yeah, that’s an interesting one. I don’t think we’ve had that question before. Someone who, naturally, a lot of things are happening later in life. For instance, the average age of first-time home buyers is now 36, and many marriages are occurring around age 33. So, a lot of these life events are taking place later and later.
As we discuss various life stages, addressing the 20s, 30s, and 40s, it might not neatly align with your situation. However, there are valuable insights to be gained from each segment of our content. Even if you’re in your 40s, there are aspects from the 20s and 30s that could still be relevant. Recognizing the value of time is a consistent theme. At 40, the compounding effect might not be as dramatic as when you were 20, but it’s still significant. For example, while $1 might not turn into $88 by 65, it can still grow to $7. The key is understanding that your timeline has expanded, possibly due to starting later. If you’re considering retiring at 70 instead of 65, adjust your savings strategy accordingly.
Listen to advice from different life stages and adapt it to your circumstances. For instance, in your 30s, focus on aspects like estate planning and risk management, such as life and disability insurance. As you’re in your 40s now, concentrate on the content relevant to this age group. If you’ve delayed certain financial decisions, assess how it affects your journey to financial independence. If your timeline has shifted, you may need to save more aggressively to catch up.
I’ve often taken an optimistic outlook on various situations. Despite starting from scratch at 40, research indicates that significant financial success can be achieved within 27 years, resulting in a seven-figure net worth by age 67. Therefore, there’s ample opportunity, and age is just a number. Still, at 40, it’s crucial to be deliberate with your resources and time. Unlike in your 20s, where many paths were open, your choices now require greater focus.
Free resources, like our financial order of operations on moneyguy.com, are valuable tools. Additionally, our courses are designed to accelerate your success by providing curated content that avoids sifting through years of material. If you’re behind where you’d like to be at 40, explore the financial order of operations course. Use the net worth tool to gauge your progress, and the know your number course to establish a solid plan. This will empower you to make purposeful financial decisions and collaborate effectively with your partner, if applicable. The “messy middle” might be challenging, but it’s a journey well worth the effort. Kudos to you for seeking guidance and striving for success in this phase. For more information, check out our free resources.