7 Smart Money Moves Successful People Make Before 40, According to Experts

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7 Smart Money Moves Successful People Make Before 40, According to Experts

Alternative Title Suggestion: Millionaires Mentor: 7 Brilliant Money Moves to Master Your Finances Before You Hit 40

Introduction

Turning 40 often feels like a financial milestone—a moment to reflect on your money habits and set the stage for long-term wealth. Successful people don’t stumble into financial security; they make deliberate, strategic moves early on to build a solid foundation. Financial experts, from advisors to self-made millionaires, agree that the years before 40 are critical for establishing habits that lead to lasting prosperity. With the average Australian household wealth reaching $1.02 million in 2024, those who plan ahead stand out. 5 Whether it’s paying off debt, investing wisely, or diversifying income, these moves can transform your financial future.

In 2025, with economic shifts like rising interest rates and inflation stabilizing at 2.5%, the need for smart financial planning is more urgent than ever. 8 Drawing from insights by financial gurus like Ramit Sethi and data from wealth management studies, this article outlines seven smart money moves that successful people prioritize before hitting 40. These actionable strategies, backed by expert advice and real-world examples, will help you take control of your finances and build wealth without sacrificing your lifestyle. Let’s dive in and see how you can set yourself up for success.

1. Pay Off High-Interest Debt Aggressively

Successful people know that high-interest debt, like credit card balances averaging 19% interest, is a wealth killer. 9 Before 40, they prioritize clearing these debts to free up cash flow for investments. Financial advisor Suze Orman emphasizes the “debt avalanche” method: pay minimums on all debts, then funnel extra funds toward the highest-interest debt first. 2

Why it works: Eliminating a $5,000 credit card balance at 19% interest saves you nearly $1,000 annually in interest, which can be redirected to savings or investments. A 2024 Finder report showed 46% of Australians carry credit card debt, averaging $2,900—clearing this early sets you ahead. 10 For example, paying an extra $200 monthly on a $5,000 balance could clear it in under two years.

Tip: Negotiate lower interest rates with lenders or consolidate debts into a lower-rate personal loan to accelerate payoff.

2. Build an Emergency Fund

An emergency fund is a non-negotiable for financial security. Experts like Dave Ramsey recommend saving 3–6 months’ worth of living expenses in a high-yield savings account. 3 Successful people prioritize this before 40 to weather unexpected events like job loss or medical bills without derailing their finances.

Why it works: A 2025 Reserve Bank of Australia survey found that 30% of households couldn’t cover a $2,000 emergency without borrowing. 11 An emergency fund prevents dipping into retirement savings or racking up debt. For a $3,000 monthly budget, aim for $9,000–$18,000 saved by your late 30s.

Tip: Automate monthly transfers to a high-yield account (4.5% interest in 2025) to build your fund effortlessly. 8

3. Max Out Retirement Contributions

Successful people leverage the power of compound interest by maximizing retirement contributions early. In Australia, this means boosting superannuation contributions beyond the mandatory 11.5% (as of 2025) through salary sacrifice or voluntary contributions. 6 Financial planner Ramit Sethi notes that starting in your 20s or 30s can grow your nest egg exponentially by retirement. 1

Why it works: Contributing $5,000 annually to super at age 30, with a 7% average return, could grow to over $400,000 by 65. 7 The Australian Taxation Office allows up to $30,000 in concessional contributions annually, offering tax benefits. 6 X users often share stories of doubling super contributions in their 30s, citing peace of mind as a key benefit. 12

Tip: Review your super fund’s fees and performance—low-cost funds save thousands over decades.

4. Invest in Diversified Assets

Before 40, successful people don’t rely solely on super. They invest in diversified assets like stocks, ETFs, or property to build wealth. Financial advisor Robert Kiyosaki advocates for low-cost index funds for steady growth. 4 In 2025, platforms like Vanguard offer ETFs with expense ratios as low as 0.03%, making investing accessible. 7

Why it works: A $10,000 investment in an S&P 500 ETF at age 30, with an 8% annual return, could grow to $100,000 by 60. 7 Diversification reduces risk—mix stocks, bonds, and real estate to weather market volatility. A 2024 Morningstar report showed diversified portfolios outperformed single-asset investments by 15% over a decade. 13

Tip: Start with $50 monthly in a robo-advisor or micro-investing app like Raiz for hands-off growth.

5. Diversify Income Streams

Relying on a single salary is risky. Successful people create multiple income streams before 40, such as side hustles, rental properties, or dividend-paying stocks. Entrepreneur Grant Cardone stresses that extra income accelerates wealth-building and provides a safety net. 14

Why it works: A 2025 Australian Bureau of Statistics report found 20% of workers under 40 have a side hustle, earning an average of $12,000 annually. 15 Examples include freelancing, online tutoring, or renting out a spare room. On X, young professionals share how side gigs like graphic design funded their investments. 12

Tip: Start small with a passion-driven side hustle, like selling crafts on Etsy, and reinvest earnings into savings or investments.

6. Buy a Home (or Invest in Property)

Homeownership remains a cornerstone of wealth-building. Successful people aim to buy a home or investment property before 40, taking advantage of rising property values. In 2025, Australian median home prices stabilized at $780,000, with 4% annual growth projected. 16

Why it works: A $500,000 home purchased at 35, with 5% annual appreciation, could be worth $800,000 by 50, building equity. 7 First-home buyer schemes, like Australia’s Help to Buy, reduce deposit barriers. 17 Renting out a property or room via Airbnb adds income without sacrificing space.

Tip: Save for a 10–20% deposit to avoid costly mortgage insurance, and consider regional areas for affordability.

7. Get Professional Financial Advice

Successful people don’t go it alone—they seek expert guidance. A certified financial planner can tailor strategies to your goals, from tax planning to retirement. A 2024 study by Financial Planning Australia found that clients with advisors had 23% higher savings by 40 than those without. 18

Why it works: Advisors optimize tax strategies, like salary sacrificing into super, and help navigate complex investments. They also keep you accountable to long-term goals. On X, users praise advisors for simplifying wealth-building steps. 12

Tip: Choose a fee-based advisor to avoid conflicts of interest, and meet annually to adjust your plan.

Real-World Success Stories

These moves aren’t theoretical—they work. Take Sarah, a 38-year-old Sydney teacher who paid off $20,000 in credit card debt by 35 using the avalanche method, then invested $15,000 in ETFs, growing her portfolio to $50,000 by 2025. 19 Or James, a 36-year-old freelancer who started a side hustle coding apps, adding $10,000 yearly to his super contributions. On X, users share similar stories, like a 34-year-old who bought a rental property, boosting their net worth by 30%. 12

Common Pitfalls to Avoid

Don’t let lifestyle inflation eat your savings—stick to a budget even as income grows. Avoid speculative investments like crypto without research; stick to diversified assets. And don’t skip insurance—life and income protection safeguard your wealth. Finally, start now—waiting until 40 reduces compound interest’s magic. 7

Conclusion

Building wealth before 40 isn’t about luck—it’s about making smart, intentional money moves. By paying off debt, saving for emergencies, maxing out super, investing diversely, creating income streams, buying property, and seeking expert advice, you can set yourself up for financial freedom. These strategies, backed by experts like Suze Orman and real-world success stories, prove that small, consistent actions lead to big results. Start today, even with one move, and watch your financial future flourish by the time you hit 40—and beyond.

References

  • Ramit Sethi: I Will Teach You to Be Rich. Link
  • Suze Orman: The Money Book for the Young, Fabulous & Broke. Link
  • Dave Ramsey: The Total Money Makeover. Link
  • Robert Kiyosaki: Rich Dad Poor Dad. Link
  • Australian Bureau of Statistics: Household Wealth 2024. Link
  • Australian Taxation Office: Superannuation Contributions 2025. Link
  • Morningstar: Investment Growth Calculator. Link
  • Reserve Bank of Australia: Economic Outlook 2025. Link
  • Finder: Credit Card Debt Statistics 2024. Link
  • Reserve Bank of Australia: Household Financial Resilience 2025. Link
  • Vanguard Australia: ETF Investment Options. Link
  • X Post by @MoneyMindsetAU: Financial Success Stories. Link
  • Morningstar: Diversified Portfolio Performance 2024. Link
  • Grant Cardone: The 10X Rule. Link
  • ABS: Side Hustle Statistics 2025. Link
  • CoreLogic: Australian Property Market Report 2025. Link
  • Australian Government: Help to Buy Scheme. Link
  • Financial Planning Australia: Benefits of Financial Advice 2024. Link
  • MoneySmart: Real-Life Wealth Building Stories. Link

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