Delayed Saving: Starting Late in Life to Save for Retirement

“The best time to plant an oak tree was 20 years ago… the second best time is today.”

– Chinese Proverb

Likewise, the best time to start putting aside money for one’s retirement is when you are young. For when it comes to getting compound interest to work its magic, time is the key ingredient.

But what about all those people who don’t have 40 or 50 years left to build a significant-sized nest egg for retirement?

Well, according to financial expert and author, David Bach, it’s never too late to start. “Even if you’re starting late,” Bach writes in his book, Start Late; Finish Rich, “you can still amass quite a respectable amount of money.”

And you don’t have to be earning some sort of mega annual income either. In fact:

“How much you earn has almost no bearing on whether or not you can build wealth.”

– David Bach, Start Late; Finish Rich

Rather, explains Bach, “It’s not how much we earn, it is how much we spend.” And some of that spending can easily be trimmed by looking at what Bach calls the “Latte factor.” If, for example, you are currently buying a fancy coffee every day for $5 – and you instead saved and invested that $5 per day, you could actually build a nice little sum of money.

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