Financial Independence For Late Starters

Financial Independence for Late Starters: It’s Never Too Late  

If you think it’s too late to start saving and investing, I’m here to tell you it’s not too late.  

Whether you’re in your 40s, 50s, or even 60s, financial independence is still possible. And today, I’m going to show you exactly how to get there. If you’re under 40, there are tips for you too or if you’re someone who uses money, makes money, or even knows what money is, you will enjoy these 7 steps to get someone on track.   

Step 1. 

Mindset. I’m not talking the Law of attraction, think yourself rich, manifest a million dollars by saying a few affirmations. If you’re convinced you are a lost cause, a hopeless case, then you need to shift that mindset. You are not a hopeless case or a lost cause. No matter where you are in life, small consistent actions will create massive change over time. 

Step 2. 

Wherever you go, there you are. Assess where you are. You need a clear picture of your finances. List out everything. All your assets. All your debts. Calculate your current income and expenses. Knowing where your stand helps you create a realistic plan to move forward. 

Step 3. 

Maximize your income. When you’re starting later, increasing your income will accelerate your progress. Here are some ideas. Side hustle, part time job, freelancing. As an HR person, negotiating a raise at work takes a lot of work. If you’re going to do that, research video on how to document why you deserve an increase. Just going to your boss and saying “I want more money” doesn’t work.  

Step 4. 

Slash unnecessary expenses. I’m not talking about cutting everything. Go through everything and see what you can cut. Do you need Hulu, Netflix, Disney+, Paramount, Peacock? Notice I didn’t mention Prime. Look no one is saying you can’t resubscribe when you are in better shape. 

Here’s a thing I do every year. I call my bank and tell them I lost my debt card and need a new one. I do this because sometimes I forget I signed up for something and sometimes my son will sign up for something. Within a month they email you about updating your payment info. Netflix isn’t there holding anything to your head making you resubscribe.  

Step 5 

Time to prioritize saving and investing. Max out your 401K, 403B, etc.. If you have an employer match, you’re giving up free money. Open and contribute to a IRA, either a Roth or traditional. Even if you start small, consistency will pay off. Don’t use those extra change apps. Any small amount of money you put in, will be taken by administration fees. 

Step 6 

Pay off debt strategically. First let me say if anyone tells you there’s only one way to pay off debt, run. There are other ways. You need to pick what works best for you. You’re not an idiot. I know I personally hate it when I get called a moron because I picked a different way.  

If you can refinance high interest cards or loans with a lower interest one, go for it. That’s what I’m trying to do but my debt-to-income ratio is still not so good. 

Step 7 

Create your plan for retirement. I still can’t believe I’m doing that. I swear it was just last month I was buying tickets to see The Ramones at the Ritz for after my senior prom. Yes, I was cool like that. Unfortunately, teen coolness doesn’t pay for my cholesterol meds or a colonoscopy copay. 

Consider working a few extra years. Explore alternative retirement options. Maybe part-time work. When my dad retired, it was a nightmare for my mother. This was a man who has worked since he was 6 years old when the Nazi’s finally broke through the Greek Frontier. Suddenly is the middle of February and he retires. My mom realized that she was too pretty for jail, so she got him a part-time job as a school crossing guard. It was perfect. 10 months a year, few hours a day, county benefits. 

I’ve worked since I was 13 years old. I can’t imagine not working. I fantasize about it, but I can’t imagine it. Does that make sense?  

Anyway, there are many ways to create a fulfilling and financially stable retirement. It’s not too late. Please let that mindset go. The best time to have started retirement planning was years ago. The second best time is right now. 

Start where you are, use what you have, take action now. You got this.