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Right now,?almost half of all American households?have no savings in retirement accounts, according to the Survey of Consumer Finances (SCF). I don’t know about you, but to me, that’s scary.
So what do you do if you're over 35 or 40 years old and you have no money saved, or very little saved? Where do you start? Here are 8 things to do in order to get started.
You can watch the video HERE.
- It's never too late: We have to believe that we can save money, invest money, and build wealth. At 40 years old, we are entering the second half of our lives, but it's not over. However, we have to believe it's possible first. Everything starts in our minds, and building wealth is no exception. The key is to start now.
- Fully engage in self-learning: Everything we know about money up to this point has led to where we are with money right now. If we have nothing saved, or very little invested for retirement, it's a clear indication that we need new information to get started. We should focus on self-improvement and self-learning. I suggest reading at least 1 non-fiction book about investing or personal finances per month.
- Create a financial plan: Our financial plans do not have to be complex or sophisticated. However, I would suggest we write out a strategy that includes our vision, our financial goals, and daily action steps for each financial goal. (Be sure the financial goals include amounts and timeframes)
- Pay ourselves first: The most important thing we can do is to invest our money today, for our future. If we are starting from nothing over the age of 40, the amount of money we save and invest is going to be a crucial determining factor in how much wealth we are going to be able to build. While our time is not up, our time is limited, so we have to be in the habit of saving for ourselves first and putting aside as much as we can.
- Pay off debt: Debt on depreciating things can wreak havoc on our ability to save and invest for our future. Paying down debt accelerates our net worth. Consider the debt snowball method to pay down debt faster.
- Increase our income: The more money we make, the more we can invest. There are two ways to make more money. First, lower our expenses. And second, bring in more money. In order to build wealth from nothing, it helps tremendously if we can create avenues to have more money at our disposal.
- Discipline, focus, and commitment: Our discipline and commitment is key to our ability to achieve the things we want to do with money. If we are starting with nothing, it's even more imperative that we remain focused and intentional with our money. Discipline plays an enormous role in our wealth building.
- Prioritize our health: Nothing else on this list matters if we aren't in good enough health to enjoy the fruits of our labor. This includes our mental health, our spiritual well-being, and our physical health. We only get one person to manage, so we have to manage the physical, mental, and spiritual health of that one person, well.
So there you have it. The 8 things to get started saving and investing money after age 40, if you have nothing, or very little, saved for retirement.
It’s going to take work, but it’s possible and it’s doable. As long as you are breathing and blinking, you can do it
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