It’s Never Too Late

It’s never Too Late

Are you in your forties, fifties, sixties? Feeling like you are behind the eight ball and that financial independence is completely out of your reach? While I might have agreed with you in the past, after yesterday’s recording of The What’s Up next Podcast, my perspective may have changed. Although compounding is king, and there is no better time to start saving than twenty years ago, there are still some viable pathways. It’s never too late to start on the journey to financial independence.

Even if you are late in the game, there are a number of superpowers that are available to a grand majority of people. It might not be easy, but the principles are simple.

Real Estate

There is no faster way to reach financial independence than with real estate. There is no greater net worth booster that I have come across. Why is this path so powerful?

First, you can begin the journey with almost no money in the bank. That’s right. Leverage is an incredibly powerful tool when you are starting late in the game with few assets to your name. It is beyond the scope of this post, but there are many ways to purchase a property with no or little money down.

Need somewhere to live? Why not house hack while you are at it? House hacking not only provides income from your property, it cuts down on living expenses, and brings tax benefits. Boom!

Within five years, a successful real estate maven can go from zero to multiple properties that provide cash flow in excess of the average person’s monthly spending.

That’s what I call financial independence! It’s never too late if you are willing to jump into the landlording business.

Frugality/Geoarbitrage

It’s simple. If you are in the highest tax bracket, for every dollar you save, you would have to make two dollars after you take into account the cost of taxes and other costs associated with the work place. Making more money is hard.

Saving money is often much easier. Make your own coffee. Ride your bike. Sell that second car. Mend and repair clothes. Do it yourself around the house. The possibilities are endless.

Of course you don’t want to live like a pauper, but often your greatest spending is on things that you actually care little about it. It is never too late to become intentional about what you spend your money on. Saving an extra ten thousand dollars a year can cut down the time to retirement dramatically.

And let’s not forget geoarbitrage. For all those whose kids have already left the house and are having trouble making ends meet…why not leave the state? Leave the country? Go somewhere that is infinitely more affordable.

What do you have to loose?

Side Hustle/Part Time Work

We often look at financial independence as an all or nothing game. But, in truth, there are many ways out there to make an extra buck. Increasing income with do it yourself, digital, and solopreneur businesses are more accessible than ever.

You might not be technically retired, but you can spend your later decades doing something you like on your own terms. It is never too late to develop the entrepreneurial spirit.

You just need to get past your own limiting mindset.

Final Thoughts

There is no question that those who start in their twenties are ahead of the game. Compounding is an incredibly durable force. The longer you earn, save, and invest, the more you will have. Yet, it is a mistake to decide that just because you are older, that the shipped has already sailed.

It is never too late. There are tools such as real estate, frugality/geoarbitrage, and side hustling which help make up for lost time.

What other choice do you have?

To give up?