I’m 35 and broke. Is it too late for me to start investing?

Is it too late to invest? 35 and broke

Sometimes I get questions like “is it too late for me to start?” Of course not! Just yesterday I was reading a post by a guy looking for investment advice for his 83 year old mom. He was planning her finances for the next 20 years. He’s expecting her to live to at least 103! And 20 years is a long time to invest!‎

So if you’re still just baby 35 (or 45 or 55) you should be thinking about the next SIXTY-EIGHT years of your life until you hit 103! That’s a super long time to invest. ‎

What Luis did here wasn’t CRAZY. He just followed the two rules. But he did have to take decisive action because the earlier he starts the more time his wealth can grow.‎

Let’s say his family makes the median US income of about $70,000 per year. After taxes that goes to about $60,000. After his $1,000/month of investing, that leaves $48,000/year to live on, or $4,000/month. Not bad, and definitely liveable! And for the reduction in spending from $5,000 to $4,000/month he’ll retire a multimillionaire! ‎

Where do I get 10%? Well, over the last 100 years investing in the US stock market has returned about 10% per year. Over the last 40 years that number is about 12.2%! It’s simple to realize that growth by buying and holding an index fund!‎

Note that these numbers don’t take into account inflation. His $2M at 65 is going to buy less stuff than it does today. If you assume 3% inflation, about the last 100 years average, his $2M will be worth about $1.2M in today’s dollars. Still not a bad chunk of change, plus as Luis’ income goes up with career growth and inflation so can his investment contributions getting to or beyond that $2M mark after inflation! I’ve found that once new investors start getting serious, they see the power and end up vastly outperforming the original projections!
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As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎

-Jeremy‎

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Jeremy Circle

Hi, I’m Jeremy! I retired at 36 and currently have a net worth of over $4 million. 

Personal Finance Club is here to give simple, unbiased information on how to win with money and become a multi-millionaire!