This Is How Much You Should Have Saved by Age 40 in 2025

I turned 40 this year and few things will make you rethink your money like hitting that milestone.

It's the age where both your good and bad financial choices start catching up with you. The mortgage, the kids, the career moves that paid off (or didn't) all show up in your net worth by now.

What the average 40-year-old really has saved

According to the Federal Reserve's latest Survey of Consumer Finances, Americans ages 35 to 44 have:

• A median net worth of $135,300, and
• An average net worth of $548,070.

That's a massive gap because averages are skewed by the ultra-wealthy. The median number (the middle point) is a much better snapshot of where most people really stand.

But even that number doesn't tell your whole story. Where you live, your income, and family situation all matter, which is why the best benchmark adjusts to you.

The rule of thumb: Aim for 3x your salary by 40

A good savings rule is to have roughly three times your annual income saved by age 40. It's not a perfect science, but it's simple and adaptable.

If you make:

• $60,000 per year, aim for around $180,000 saved
• $100,000 per year, shoot for $300,000 saved

That includes everything: 401(k)s, IRAs, savings, and investments. And if you're behind? Don't panic. Hitting 40 isn't a deadline; it's just a checkpoint.

How to figure out your real net worth

Your net worth equals what you own minus what you owe.

Here's what to include:

• Assets: Checking and savings accounts, CDs, retirement plans, brokerage accounts, home value, and any other valuable assets you could sell.
• Debts: Mortgages, credit cards, student loans, car loans, or anything else you owe money on.

If your assets total $250,000 and you owe $100,000, your net worth is $150,000.

I include my home in the calculation, but only at a realistic market value, since it's not a liquid asset. Your goal should be building up financial assets (like IRAs and brokerage accounts) that can actually support you once you stop working.

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How to grow your savings and net worth faster

You can't control the past, but you can control what happens next. Here are the moves that matter most in your 40s:

1. Kill high-interest debt fast. Credit card balances and car loans drain wealth faster than almost anything else. Wipe them out first.
2. Raise your income ceiling. A side hustle, certification, or job change can add thousands to your annual income -- and accelerate your savings goals.
3. Cut the noise from your budget. Even freeing up $200 a month can give you room to invest. Automate it before you're tempted to spend it.
4. Invest consistently. Whether it's a 401(k), Roth IRA, or taxable brokerage, set up recurring contributions. You'll save more without thinking about it.

I put $1,000 a month into my 401(k) and max out my Roth IRA each year. Having it on autopilot helps me stay disciplined, and it's the easiest way to build wealth quietly.

What to do next

There's no single number that defines "success" at 40. The real goal is progress: knowing where you stand and taking consistent action to grow from here.

If you're ready to take that next step, start by finding the right place for your money to grow.

Check out our list of the best investment platforms for 2025 and make this the year your savings finally start working harder for you.