Here Is How To Get Rich After 40

Improper planning and not saving leads to empty pockets.

To get rich means doing things differently. You’ll develop growth and opportunity thinking, cut expenses, invest heavily, and possibly create new income.

Reference Disclaimer: Not Financial Advice

It Starts With Knowing What You Want And Why, Because That Makes It Real

Understanding what you want and would like to be determines what you do next.

Understanding what you want, and why, is essential in making decisions.

Let’s say, someone wishes to become a professional Football athlete. When asked why, the answer is love of the game. Another also desires to become one. When asked why, their answer is to become famous.

The career may be the same, but the journey is vastly different. 

The Engineering Management Institute goes over the importance of knowing why you choose to do anything. It explains how this insight develops an importance in the work pursued. The more honest it is, the higher the likelihood you’ll be successful.

Psychology Today also details the significance of comprehending the reason behind your actions. Having this understanding keeps your decisions far more consistent and less vulnerable to deviation. 

The concept of wealth and riches can vary greatly from individual perspectives. It’s not always about how much money or material assets you have. Some may perceive being rich in terms of personal relationships, health, or a sense of fulfillment and purpose in life.

If you were to ask me, it’s about the freedom to live without feeling like I have to work. More specifically, it’s a quality of life where my basic needs are more than met, including the ability to move throughout society without too much consideration about the cost.

That being said, if you want to become rich, why? 

Your answer will provide direction into what being wealthy means to you. In another post, I address how to get rich through a normal job and touch upon its varying definitions.

When determining your personal meaning, know that it’s ok to change your mind. Ideas tend to evolve as you move forward.

I recall in my younger years desiring a lifestyle of lavish parties, expensive cars, yachts, and so forth.

I was sure I needed at least $100 Million. The work it would have taken to get there was enormous and, frankly, I couldn’t find a path I genuinely liked. It was always demanding with cut-throat competition and often required I do things I hated.

When I turned 40, I found myself appreciating the more accessible aspects of life.

Going to the beach, riding bikes, reading books, watching a great movie, listening to music, and participating in stimulating conversations. This is what I thoroughly enjoy. Participation in that kind of lifestyle doesn’t require hundreds of millions of dollars.

If you were to ask me even further, it’s not so much the activity itself that is of great value, but more the feelings that come from it. Forbes published an article that touches on this concept.

Of course, I do admit, it’s better going to the beach in an air-conditioned car, riding a quality bike, reading while reclining on a nice couch, watching movies on a beautiful screen, listening to music through high-fidelity speakers, and conversing over good food and drinks. 

After You Decide What Rich Means, Evaluate Your Present Circumstances

Have a good understanding of where you are helps to make future decisions.

Assessing your current circumstances is a crucial starting point when embarking on your financial journey. To arrive at the destination you desire, start by evaluating your current situation.

Your Assets and Liabilities

Begin by compiling a comprehensive list of your assets and liabilities. Assets may include savings accounts, investments, real estate, vehicles, and valuable possessions. It’s anything that tends to go up in value over time. Liabilities encompass debts, such as credit card balances, student loans, mortgages, or any outstanding loans. This is anything that goes down in value over time.

Calculate your net worth by subtracting your total liabilities from your total assets. This assessment will provide a snapshot of your financial health.

Here is an example.

The net worth shown here is in the negative. That means he or she would need to acquire at least $22,100 more before achieving a net worth balance of $100.

Account For Your Obligations

Many find themselves navigating the complex responsibilities of caring for their children, parents, and even grandparents simultaneously.

Some in their 40s and beyond often find themselves caught in the middle, facing the dual role of being caregivers to their children and their aging parents or grandparents. Meeting these emotional obligations can bring immense fulfillment, but can also be emotionally draining.

Providing physical care to both children and elderly family members requires an extraordinary amount of energy and time. The cost of raising children, education expenses, and providing for their needs can strain budgets. Caring for aging parents and grandparents may involve medical expenses, home modifications, and assisted living costs. 

There are others who are dealing with the financial and emotional burden of divorce.

Alimony (spousal support) can impose both emotional and financial burdens on both parties. From an emotional perspective, alimony can evoke feelings of resentment, anger, and disappointment, as it often serves as a constant reminder of a perceived failed relationship. The person receiving the alimony may also experience a sense of dependency, as they rely on the financial support provided by their former partner. 

If you find yourself overwhelmed by debts and obligations like these, don’t feel bad. If anything, it reveals where much of your unhappiness and stress may be coming from. Awareness of the problem begins the process of moving beyond it.

This leads to another important factor for consideration.

If You Choose To Become Rich, You Should Consider Looking Into Your Physical, Mental, and Emotional Health

Being healthy is what all successful people are.

How do you feel? 

It’s not asked a lot and when it is, the answer is often a casual one. However, it’s a very important, if not a cornerstone, question.

Another Forbes article goes over how most very successful people are dedicated to being healthy.

If you honestly can answer that you feel great (plenty of energy, rested, clear-minded, and happy), including believing yourself to be in a physical shape you find acceptable, then skip this section. You’re ready to kick forward.

If not, read on.

The circumstances and conditions of our environment contribute to decision-making. It also can affect our bodies.

Whether it’s becoming rich, or taking part in any new adventure, it’s easy to overlook the importance of our well-being. Too many people mistakenly believe that achieving riches or money alone is the ultimate goal, disregarding the impact it can have on their physical, mental, and emotional health. 

The Foundation for Success Is Physical Health

Regular workouts help keep the body healthy.

Physical health serves as the foundation upon which all other aspects of life are built. It directly affects our energy levels, productivity, and overall well-being. Neglecting physical health in the pursuit of becoming rich can lead to burnout, decreased efficiency, and potential health issues down the line. 

Regular exercise, a balanced diet, and sufficient sleep are fundamental pillars of physical health. Engaging in physical activities not only strengthens the body but also enhances mental clarity and reduces stress. 

The Key to Creativity and Innovation Is Mental Health

Being at peace and doing things to encourage that help the mind immensely.

Our mental health plays a significant role in our ability to think creatively, make sound decisions, and adapt to challenges. High levels of stress, anxiety, and burnout can hinder cognitive abilities, impair judgment, and lead to poor decision-making.

Take time to nurture your mental health by engaging in activities that promote relaxation and mindfulness. Practice stress-management techniques like meditation, deep breathing exercises, or pursuing hobbies that provide mental stimulation and escape from daily pressures.

The Fulfillment of True Prosperity Comes From Emotional Health

Emotional health is just as important as bodily health, if not more so.

Evaluating and nurturing your emotional health allows you to experience joy, satisfaction, and a sense of purpose along the path to wealth.

Developing emotional intelligence is essential for building successful relationships, both personal and professional. Activities that bring joy, whether it’s spending time with loved ones or pursuing hobbies, can help with emotional well-being. 

Take a moment and ask yourself if you’re healthy. Are you eating right? Could you lose some weight? Should you?

What about your mind? Are you feeling constantly stressed? Where do you believe it’s coming from?

Are you unhappy? Why, or why do you think you might be?

Much of how well you do anything comes from how well you are and feel.

Being willing to make changes to your life in response to your current circumstances helps to boost the pursuit of riches. It also helps to create a more balanced you, which will increase your happiness.

If you conclude that your life is a mess, don’t worry about it. Most people’s are. Mine definitely was. 

You’re not alone, and the great part…you can turn it into something much better.

Adjust Your Perception In Alignment With The Life You Desire, Success Often Happens Quickly

Making proper choices to your lifestyle in alignment with you would like to be helps make the journey easier.

The publication, Very Well Mind, posted an article that describes how the environment influences perception and behavior. Your surroundings can either help or hurt you.

Feng Shui Is A Change You Can See

In another post, I wrote about the power of Feng Shui. I very much enjoy the application and use of the art. While I have not found any supporting evidence of its metaphysical qualities, the influence Feng Shui has behaviorally is exceptionally well-proven.

Altering your environment is a first step that often results in massive positive changes. It’s generally satisfying and almost always immediately effective. However, implementing Feng Shui throughout the entire household can be a daunting challenge. It may discourage more than help. 

You may want to start with one room, or at the very least your personal space. Wherever you spend most of your time at home, Feng Shui it. While there is a lot to learn, you can start by doing the following 2 techniques.


Get rid of items that no longer serve a purpose and are just taking up space.

Get rid of things you haven’t used in at least 2 years. Sell them and turn it into money, or give them away. Interestingly, it’s been said that the process of getting rid of excess opens you up for more. As an anecdote, I’ve found that to be very true

It’s also been shown to improve moods and reinforce positive behaviors. WebHealth goes into greater details explaining the benefits in this article.

Sit Like A King or Queen

Position yourself to always be in the dominant role.

Try to have your furniture positioned in such a way to where your back is NOT to the entrance. Psychologically, the benefits of seeing people enter the room reinforce confidence and assurance. 

In a psychological article entitled, Surprise, researchers have found that the ability to have reasonable expectations creates far more mental harmony. In other words, when seated or positioned in a room, the less surprised you can be by unexpected visitors, the greater your mind will be at ease.

To Become Rich After 40, Know What You Want, Understand Where You Are, Then Have A Consistent Plan

Having a plan can make or break your desires.

Walking the path to a wealthy life requires a personal knowledge of yourself (your meaning of being rich, your current situation, including overall health). The next step is forming a plan.

Forbes published an article about the importance of having a financial plan. When you have some kind of a written, outlined direction for achieving something, success is far more assured than without it. 

There are many ways to put together a financial roadmap to becoming rich. The following will give you a good idea of how to get started.

Personally, I like simple plans and have done very well with this approach. 

STEP 1: Determine How Much You Need

Calculating your expenses is a great way to get ahead financially.

This isn’t as hard as you may think, but it does require a little bit of easy math. A good indication of what you’ll need or like to have for retirement is figuring out how much you spend now. What does it cost to live the lifestyle you do?

For example, if you find yourself spending about $3,000 a month for living expenses and entertainment, that means you’ll need about $40,000 a year. Be sure to include around 2% for inflation, so in this case, $40,800.

STEP 2: Apply The Rule Of 4%

The Rule of 4% is a great way to determine future income needs.

Bankrate wrote an article explaining this rule. I also wrote about it here. 

The 4% Rule is a reliable formula for determining the amount you’ll need to save for retirement. In summary, 4% is withdrawn annually from your total retirement account to cover your expenses.

Here is the 4% Rule formula.

Retirement Amount x 4% = Annual Money Needed

Going back to the $40,800 example, to figure out the amount we’ll need for retirement, we need to isolate the retirement number. Divide both sides of the equation by 4% (or 0.04 as a decimal).

(Retirement Amount x 0.04) / 0.04 = $40,800 / 0.04

This simplifies to:

Retirement Amount = $40,800 / 0.04

The total retirement amount we’ll need is about $1,020,000 to withdraw $40,800 a year.

STEP 3: Find A Compound Interest Investment

Compounding interest is a great way to bring in more money without more effort.

Albert Einstein is quoted saying that compound interest is the world’s 8th greatest gift. He’s right, and that is the goal. 

The fastest and most reliable way to become rich is through investing in something that provides returns via compound interest. 

In my experience, and many others have agreed, the S&P 500 Index is one of the best investments. Warren Buffet, considered the most successful investor of the last 50 years, says the S&P 500 has the best-performance.

It’s been concluded that the S&P 500 Index has produced an average of 9% compounded returns. Of course, some years are greater, and others lower. However, since its 1957 inception, it’s continued to produce solid returns.

The Index is made of the 500 top-performing publicly traded companies. When investing in an Index Fund, you’re participating in a piece of the most profitable companies. As such, the probability of permanent loss (bankruptcy, value going to zero, etc) is extremely unlikely. 

There are other compound interest financial vehicles that provide excellent returns. However, the purpose remains the same. You’ll want to look for investment opportunities with low risk, consistent returns, and compounding interest.

For me, I find the S&P 500 Index to be the most reliable, best-performing stock you can purchase without too much research or expertise necessary.

As always, be sure to do your own research and consider meeting with a licensed financial professional.

STEP 4: Determine Your Investment Strategy

Having an investment strategy is important.

Once you’ve concluded which investment vehicle you’re most comfortable with, you’ll want to figure out how you’ll be investing.

There is a method known as “dollar cost averaging“.

It is an investment strategy where you purchase the same investment vehicle every month until retirement. The benefit is that you’ll at times be able to obtain more stock when the market value is lower without spending time looking for it.

The strategy is built upon the idea that consistency over time far outperforms timing the market.

In other words, it avoids having to carefully watch for when the value of good stocks drop and then quickly purchase them. Markets will rise and fall, regardless of whether we observe them. Through consistent monthly scheduled investments, more often than not, the returns earned over time are greater than trying to beat the market. 

Another benefit is that dollar cost averaging frees up your mind and time, so that you can focus on other things.

STEP 5: Calculate How Much You’ll Need To Invest

Knowing what you have to consistently invest is half of the solution.

At this point, you should have anidea of how much you believe you’ll need or want to withdraw from your retirement each year. Based on the 4% Rule, you should also have a good grasp of what your total retirement account will need to look like. 

Now, we calculate how much is necessary to invest each month and for how long to arrive at our retirement figure.

The site,, provides excellent free compound return calculators to help compute this.

Let’s go back to the $40,800 example. A total retirement of $1,020,000 is the goal.

Say this person is 45 and would like to retire at 65. That means there are 20 years any invested funds have to work to reach $1,020,000.

Using the compound returns calculator through the link above, the monthly invested amount, at an S&P 500 Index average of 9% compounded interest, needed to reach $1,020,000, is about $1,520.

$1,520 invested each month, consistently for 20 years, at 9% compounded interest, will achieve about $1,020,000. Not financial advice. 

STEP 6: Stick To The Plan, or Adjust It As You See Fit

Changing ideas or plans is not necessarily a bad thing.

No plan is ever perfect, and there is nothing wrong with making alterations to better fit your goals, even if those desires change.

Returning to the $40,800 example, let’s continue by presuming the $1,520 each month is too difficult. Until expenses can be properly cut and / or additional income earned, it is completely fine to invest with less. Just understand, the amount of time needed to reach the goal of $1,020,000 will either take longer or require larger amounts invested in the future.

Invest whatever you’re comfortable with, even if it’s a few hundred dollars. Just be consistent, and increase it whenever you can. 

You’ll be surprised by how far a small investment goes. Consider that just $250 monthly, over 20 years, compounded at 9%, turns into over $165,000.

STEP 7: After Cutting Expenses, Look For Additional Income

Find new ways to earn more.

Once you’ve established your investment methodology, and the amount you’ll need to invest to reach your retirement amount, consider starting a side job for additional income.

This, understandably, can be quite challenging. 

According to an article posted on Yahoo Finance, LinkedIn reported that nearly 50% of Americans have side jobs. Having some kind of side hustle is becoming a norm as of the date of this post.

You too can have a side job, however, keep in mind, it also takes consistency and energy. This is why having the proper mental attitude, outlook, and physical health, including a conducive and encouraging environment is so important.

You want to avoid burn-out as much as you can.

STEP 8: Go Big, But Don’t Be Afraid To Re-Evaluate What You Want

Sometimes making changes is the right thing to do.

Personally, I think you and everyone else should always go after your biggest dreams, so long as you never lose sight of what is important. 

I certainly won’t begin to tell you what that is. Only you know. I can, however, tell you what is most important to me, and what I’ve found many people value more than anything.

It’s peaceful contentment.

This is the kind of satisfaction and happiness that you could consider separate from the troubles of the world. It’s where the activities or state of being exist free of worries. Imagine living a life where the sun is your clock. I’m anticipating that a large retirement will help me live it more often than not.

Conversely, if while in pursuit of your retirement goals, you find that the effort to obtain a certain financial figure is simply too demanding, or you’re not willing to do it, that’s ok. 

Recalculate what your annual withdrawal amount will be using the 4% Rule, and do your best to be as prepared for retirement as possible. That may mean making adjustments to your living arrangements, potentially moving to a less expensive area, living with family, etc.

There is nothing wrong with any of that.

Just be honest with yourself with what you really want, and of course why.

Until the next time, cheers!

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