Late Start Money Tips: 4 Ways To Get Rich After the Age of 50
While experts recommend starting to save early in order to take advantage of compound interest, contrary to popular belief, you can get rich even with a late start. Indeed, it’s never too late for anything in life and by following certain rules, you can still get wealthy after 50, experts said.
“If you’ve started saving later in life, don’t get discouraged,” said Joe Camberato, CEO of National Business Capital. “Instead, focus on what you can control. People are living longer these days — well into their 90s and even 100s. So, if you’re in your 50s, you still have another 40 to 50 years ahead of you.”
Camberato said, if you’re in your 50s, now more than ever you should focus on income — as you age, it becomes more about cash flow than simply accumulating a large sum of money or trying to get rich.
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Pay Off Credit Card and Other High-Interest Debt
Making strides in paying off debt is one of the first steps, experts said.
“Debt is the antithesis of wealth,” said Kyle Enright, president of Achieve Lending.
For instance, Enright said you should consider that paying off a credit card with a 20% interest rate is effectively giving yourself a 20% return on an investment. And once you have no debt, you can move forward.
“Make sure student loan debt is paid off. Believe it or not, student loan debt still plagues people in their 50s,” he said. “Consider that 15% of student-loan debt holders are in their 50s, with an average amount of more than $44,000. Looking at all adults 50 [and older], more than 9 million are still paying off federal student loan debt.”
And of course, he said — pay off the mortgage if you still have one.
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Make a Realistic Financial Plan
While “building wealth” is a great goal, every person is going to get there differently, Enright said. In turn, evaluate your assets and debts.
“Check one of many online retirement calculators available to determine how much savings you’ll realistically need to pay for your retirement needs,” Enright said.
And educate yourself on personal finance. “If you don’t already regularly read and follow at least a few credible sources, start,” he said.
Budget for Savings
Whether your assets are $50,000, $500,000 or $5 million, people looking to become wealthy have a spending plan, Enright said.
“That is what a budget is. And that budget incorporates savings as an expense item so that you are deliberately [and] purposely working toward your goal,” he said.
Think About Diversifying Your Investments
For instance, experts said investing in real estate is a fantastic way to build wealth.
“It comes with some great tax benefits and can bring in good cash flow and asset appreciation over time,” Camberato said.
Another way to build wealth, he said, is to think about starting a small business.
“Something simple that can bring in extra cash flow and could potentially be sold for a nice profit later,” he said. “The insurance industry is a great option to explore. It’s created more millionaires in the U.S. than any other industry.”
Finally, Camberato recommended continuing to reinvest your earnings into more income-producing assets.
“That’s how the wealthy keep getting wealthier,” he said. “Remember, wealth doesn’t happen overnight, so get started quickly and stay focused.”
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This article originally appeared on GOBankingRates.com: Late Start Money Tips: 4 Ways To Get Rich After the Age of 50
