We have 3 goals for you by the time you hit 40: 1) Student loans are 100% paid off. 2) You have an investment account open. 3) You are using a high-reward credit card like an adult. The how? Keep reading.

Nobody’s out here sweating about how much cash they should be stacking at 20. At that age, you’re still figuring out how the world works, right? But slam the brakes at 40, and things get real. More gray in the hair, fewer wild nights, and suddenly you’re throwing around questions like, “What’s the bank balance supposed to look like by now?”

Time to start figuring it out, playing catch up sucks.

You know these one-size-fits-all rules they throw at you? Trash. Asking how much cash you should have by 40 deserves a human answer, not some AI, canned response. Here are a few points for you to consider:

Emergency Fund:

Think of your Emergency Fund as your first defense, not the only one. In your younger days, it should cover three months of essentials – rent, mortgage, groceries, utilities, and stuff you can’t just switch off. Three months, that’s how long it takes the average millennial to land a new gig. As the years roll on, maybe you’ll need more in the fund, knowing it could take longer to replace that income. Once retirement hits, three months is plenty.

Your Retirement Vision:

When they hit you with the classic “How much money by 40?” we say, “It depends.” Are you the cabin-in-the-woods type or the jet-setting, first-class-everywhere kind? And what about visiting the kids/grandkids?

General rules of thumb are dangerous to follow when they don’t account for what you actually want.

Goals-Based Spending:

Check your income now and plan to replace at least 80% of it in retirement. Let’s say you’re pulling in a hundred grand a year. You’ll need 80k a year in retirement. Most folks are shooting for a 30+ year retirement (65-95 years old). That’s around 2.4 mil saved by the time you hit the big R.

But what if you’re eyeing sabbaticals instead of the classic 30-year grind? Or you love your job so much that retirement feels like a snooze? If saving is about spending, spend like it fits your goals. Online calculators can help you see if you’re cruising toward your dream retirement. Check out this one.

Financial Checkmarks Before 40:

Student loans? Zero. Paid off.
Got an investment account doing more heavy lifting than a standard savings account?
Swiping a high-rewards credit card, keeping that revolving credit card debt at a solid zero?

You came in asking, “How much money by 40?” Maybe expecting a clean mil, two, or eight, whatever. We’d rather give you something that speaks to you and what you’re gunning for in the next stretch of your life.

We are planners, after all.

ARC Wealth offers tailored financial solutions designed to empower young professionals with high incomes in building and overseeing their wealth.

Whether you’re dreaming of a getaway to Spain or eyeing a brand-new Tesla, we’re here to guide you in realizing both your immediate and future financial goals