Things to Do Before You Turn 40

Here’s a guide on important things you should consider doing before you hit 40, to help you live more confidently in the decades ahead.

Build an Emergency Fund

Life is unpredictable. An emergency fund gives you a financial cushion for unexpected events like job loss, medical emergencies, or home repairs. Ideally, it should cover 6 to 12 months of living expenses. Keep this fund in a liquid account where you can access it easily when needed.

Buy a Term Insurance Plan

One of the most practical decisions you can make in your 30s is to buy a term insurance plan. This ensures that your family won’t face financial hardship if something unexpected happens to you.

By purchasing term insurance early, you benefit from:

• Lower premiums

• Wider coverage options

• Peace of mind knowing that your loved ones are protected

Platforms like Policybazaar make it easy to compare plans and choose what fits your life stage and responsibilities.

Write a Will

A will isn’t just for the elderly, it’s for anyone who wants to ensure their assets are distributed the way they intend. Writing a will brings clarity and helps avoid future disputes.

You can include:

• Property details

• Investments

• Insurance policies

• Guardianship for children (if applicable)

There are online will-writing services that make the process simple and affordable.

Prioritise Health Check-ups

By the time you reach 40, your metabolism slows down and health risks start to increase. So, it’s wise to:

• Get a full-body check-up every year

• Exercise regularly and maintain a healthy diet

• Reduce alcohol and avoid smoking

• Prioritise mental health through mindfulness or therapy if needed

Good health is the foundation of everything else—so take it seriously.

Start or Reassess Your Retirement Plan

Retirement might still seem far away, but the earlier you start planning, the better. Use tools like retirement calculators to understand how much you’ll need. Consider plans like:

• National Pension System (NPS)

• EPF or voluntary PF contributions

• Mutual funds and annuity plans

Also, reassess your investment risk level and shift to a balanced portfolio if needed.

Clear High-Interest Debts

Before you turn 40, it’s wise to pay off high-interest loans like credit card dues or personal loans. Reducing these liabilities improves your credit score and gives you more breathing room in your monthly budget.

Learn to Say No

By now, you’ve probably realised that time and energy are finite. Saying ‘no’—to social commitments, peer pressure, or bad financial advice—is a skill that helps you prioritise what truly matters.

Invest in a Balanced Portfolio

Diversify your investments across equity, debt, and real assets. A balanced portfolio cushions you from market volatility and supports long-term wealth creation. Don’t forget to regularly review and rebalance it.

Build Passive Income Streams

Before 40, explore opportunities that bring in income outside of your primary job. This could be rental income, dividends, freelancing, or side projects. It not only offers financial stability but gives you flexibility in the future.

Spend Time with Family and Self

All the planning in the world means little if you don’t enjoy the life you're building. Make time for your partner, children, and aging parents. Also, don’t forget yourself—read that book, travel, or just take a break. Balance makes everything better.

Wrapping it Up!

Life before 40 is about laying the foundation for the decades ahead. Whether it’s securing your family with term insurance, preparing for retirement, or focusing on health, these steps help ensure peace of mind and financial freedom.