I recently celebrated my 40th year with six of my closest high school friends on a beach in Mexico. It was an incredible celebration. But this milestone year has me thinking: “what’s a 40-year-old woman supposed to do with her finances?” Here’s what I think I’ll be focusing on…how about you?
Turns out women’s salaries peak in their 40s – while men’s salaries keep growing into their 50s. So until this ridiculous discrepancy gets resolved, I better consider how I can maximize this decade to get my income as high as possible. This could mean taking additional courses to enhance my skills or work with a coach on my negotiating skills so I can pitch a bump in my salary with confidence.
This decade may also be the time when I launch my own business. All that life experience actually serves you in the entrepreneurial world. A study by MIT found that the average age of startup founders is around 42, and the average age of entrepreneurs who founded high-growth companies is 45.
Finally, this is the time to focus on my net worth, retirement and family responsibilities. This is the time to be assertive with my financial planning: are my investments in the right place? Is my retirement plan on track? And finally, will I need to support my aging parents or children (if you have them)? Am I prepared for any financial surprises?
The 40s are an incredible decade and I’m jumping in with both feet. I’ve worked hard and went through a lot of shi* in my 30s to get to this glorious milestone bday… now I just want to make sure I’m managing my finances like the wise woman I have become.