When you hit your 40s, it's time to reassess your financial situation and ensure you're on track for the future. This decade is busy, often marked by higher income, growing family responsibilities, and more clarity about where you want to be in 10, 20, or 30 years.

So, what money moves should you make in your 40s? These six moves are a good place to start:

1. Become intentional with investing.

Hopefully, you have already started investing. However, ss you enter your 40s, it's time to get serious about how you're investing. This isn't just about saving—it's about wisely growing your wealth to meet your future needs.

First, whether you're investing for retirement, a major purchase, or to leave a financial legacy, your goals should be clear. Start by asking yourself, “What do you think God wants the money He has entrusted to accomplish in the next 10, 20, or 30 years?” Setting specific targets helps you allocate your money wisely and stay focused on the long term.

Second, if you haven't already, this is the time to consider working with a Kingdom Advisor. A professional can help you create a tailored investment strategy based on your goals, risk tolerance, and timeline. They can also help you navigate the often-complex landscape of retirement accounts, taxes, and estate planning.

2. Avoid lifestyle creep.

This is big. Your 40s can bring significant income increases, whether through promotions, career advancement, or business growth. But be cautious of lifestyle creep. There is a tendency to gradually increase your spending as your earnings grow. This can derail your long-term financial security.

Instead of upgrading your lifestyle, try to maintain your current level of spending. Direct any extra income toward important financial goals like saving for retirement, paying down debt, or increasing your generosity.

3. Start saving for kids' college.

If you have children, their education might be one of your biggest upcoming expenses. While you might not need to pay for college right now, it's crucial to begin saving early to ensure you have the funds when the time comes. 

529 plans are a popular option for college savings. These accounts allow investments to grow tax-free, and withdrawals for qualified education expenses are also tax-free. Even small contributions early on can add up over time.

But let me be clear—you are not a bad parent if you are unable to help your child with college expenses. While saving for your kids' college is important, remember that your retirement should still take priority. There are several ways to pay for college. There are very few ways to cover retirement expenses beyond your retirement savings.

4. Get Adequate life insurance.

Life insurance is a crucial part of financial planning, especially in your 40s when your responsibilities may have increased. If you have dependents, a mortgage, or other financial obligations, a strong life insurance policy can provide peace of mind. 

The amount of coverage you need will depend on factors like income, debt, and how many years of support your dependents need. Aim to have enough life insurance to cover debts, living expenses, and future goals like college tuition.

You can use the DIME method to determine how much life insurance you need. DIME stands for debt, income, mortgage, and education. This amount of life insurance should cover all debts (including mortgage), children’s future college expenses ($100,000 x each child), and at least ten years of income.

As your life circumstances change, so should your life insurance coverage. Review your policy regularly to ensure it reflects any changes.

5. Have a will and emergency binder.

By your 40s, you should have basic estate planning in place. This includes a will, an emergency binder, and potentially even a trust, depending on your circumstances. A will ensures that your assets are distributed according to your wishes if something were to happen to you. It also designates a guardian for minor children.

You will also want to prepare an emergency binder. An emergency binder is a central location where all important documents like insurance policies, bank accounts, retirement plans, and the contact information for your financial advisor are stored. In an emergency, it's important for your loved ones to know where to find these documents. By the way, you get free Essential Emergency Binder pages with the 8 Money Milestones (Participant) account.

6. Check in on your parents.

As you're getting your own financial house in order, it's essential to think about the financial well-being of your aging parents or other family members who may need support. Many people in their 40s start to see their parents aging, and it's important to understand their financial needs and how you can assist. This may include helping them with healthcare decisions, managing debt, or even discussing long-term care options.

Talking to your parents about their finances can be uncomfortable, but it's crucial to understand if they have a plan in place for their later years. Help them plan for healthcare costs, eldercare, and even potential end-of-life planning. It's a delicate subject but approaching it early can prevent crises down the road.

Your 40s are an important decade for building a strong financial foundation. By being intentional with your investments, avoiding lifestyle creep, and addressing family needs, you can set yourself up for a financially healthy and generous future.