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How to Build Your Wealth in Your 40s

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When you enter your 40s, you may start feeling like you have less time to prepare for retirement and find your financial footing. This added stress can make financial planning challenging during this stage of your life.

Your 40s are a time to get focused and take strategic steps toward wealth-building that will positively impact your retirement and your ability to leave a legacy in the future. There are a few key steps you can take to build your wealth more quickly during this critical season of life.

If you haven’t prioritized debt repayment in the past, now is the time to do so. Start by focusing on your consumer debt. This includes:

From there, you can look to knock out any remaining student loans you have, and pay your mortgage off early if possible. Paying off your debt now, including “good” debt like a mortgage, frees you up to put more toward retirement savings as your retirement timeline gets shorter.

Going into retirement debt-free is an excellent way to extend the life of your savings and make space in your budget to accomplish “bucket list” goals, like travel or helping to fund your future grandchildren’s college education.

In your 20s and 30s, you were so focused on growing your career that the idea of having multiple streams of income may have seemed out of........

© Kiplinger