Everything You Need To Know
- Starting late can happen for a number of reasons.
- The only thing that is suboptimal is the timescale – everything else is the same as for everyone. The golden rules of personal finances are as true for someone starting late as they are for anyone else.
- The more you save, the more you’ll have down the line.
- The greater proportion of equities you hold, the higher the growth will likely be, but the higher the volatility.
- Don’t waste money – make every pound work for you
- You’re going to need laser focus. As Dave Ramsey says, you’re going to have to live like no-one else so that later you can live like no-one else.
Everything You Need To Do
- Start (late) with the end in mind. Take stock of where you are now, and what you have. Understand your lifestyle costs now and what you would like your retirement lifestyle costs to be.
- Pay off debt. Use the debt snowball to do this quickly.
- Budget hard and maximise savings. Create a strict budget and stick to it. More about budgeting and the debt snowball in our free online course: Financial Foundations.
- Maximise tax reliefs. Focus on pensions – tax relief more valuable than ever.
- Invest aggressively. You’re going to need the growth – not the time to be too cautious.
- Cultivate realistic expectations. Learn to be content and accept what got you in this position.
