If you are in your 40s, you might be thinking it is way too late to start planning for retirement. Wrong! There are things you can do now that can get you ready to retire later. Here are 10 “late start” retirement tips.
Look at Your Budget and Cut Costs
Looking at your budget is the first step to success. Write down all of your needs, which include housing and groceries. Then look at your wants, such as entertainment and going out to eat. Try to make sure you take of your needs and reduce the amount of wants. It might be hard to do now, but your future self will thank you later.
Work on Growing Your Income
Growing your income might sound like a daunting task because some variables might be out of your control. However, there are some things you can personally do to try and help grow your income. You can ask for a raise, look for a higher-paying job, try a side hustle, or even start your own business. These are all things that can help you grow your income!
Pay Off Your Debts
Debt is stressful, especially if it has a high interest rate attached to it. If you start paying off your debts now, future you will be grateful. The less debt you have, the more money you can use for retirement. The more money you have for retirement, the less stressful finances will be when you don’t have an income.
Invest
It is never too late to start investing. Even if you don’t put any money down for investment until your 50s, at least you put money down. It’s better to start something late than never to have started it at all.
Own Real Estate
Real estate is a great way to cash in some extra dough. You can own a property, rent it out, and make income without doing anything. You can also buy a house, flip it, and sell it for more than you paid for it. There are many things you can do when owning real estate and a lot of them are easy!
Be Frugal
Being frugal shows that you can be smart with your money and live within your means. Do you always need to buy brand-new cars? No. Do you always need to buy brand-name foods? No. Can you do some DIY around your house? Yes! Thinking about how you can save money is always a good idea!
Put Money Aside in a 401(k) or an IRA
If your company has a 401(k) program, it is highly recommended that you start putting aside money each time you get paid. If your company doesn’t have a 401(k) program, then you can get an IRA. Both are great for retirement!
Make Catch-Up Contributions
If you have the money now, it is great to make catch-up contributions to a 401(k) or an IRA. Since you weren’t saving much when you were younger, this is a good way to make sure you put additional money into those accounts. There is a limit to how much you can add to these accounts for catch-up contributions, so make sure you know how much that is.
Read More: Financial Lessons for Your 20s, 30s, 40s, and Beyond
Think Like an Entrepreneur
Thinking like an entrepreneur means actually becoming one and starting your own business. Having your own business can help you add extra income into your household. Don’t know where to start? You can also go to a financial advisor for help.
Read More: 20 Tips for a Happy Retirement
Move
Sometimes the place you are living is eating at your savings. Moving to a place that is cheaper is always a good option. Your cost of living shouldn’t be so high you can’t afford it, which makes moving sometimes the more economical thing to do.
Read More: 20 Tips for Early Retirement