I've been living paycheck to paycheck since starting work 10 years ago. I'm now 35 with hardly any savings. I hope it's not too late for me. Where do I start and what can I do to catch up? - Seedly
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Anonymous

Asked on 02 Mar 2019

I've been living paycheck to paycheck since starting work 10 years ago. I'm now 35 with hardly any savings. I hope it's not too late for me. Where do I start and what can I do to catch up?

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    Btw, starting at age 35 is imho not too late. So don't be discouraged.

    (1) Be discipline towards savings and investing

    Particularly in this case where you have limited financial resources, you should be even more disciplined. Sometimes it requires you to make tough decisions, delaying luxury purchases and purchase only when its an essential need.

    (2) Start low risk, build confidence before gradually increasing portfolio risk

    Investors who just got started should go low risk first. Be patient. Go through a market correction to feel the market fluctuations and better understand your emotional resilience towards market volatility (ie fluctuations). When you gain more confidence and experience, gradually increase your portfolio risk to accelerate your wealth accumulation.

    (3) Invest broadly to diversify away risk

    Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss.

    Therefore, try to start off with a globally-diversified portfolio of stocks and bonds with a higher allocation to bonds. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds 40% global stocks) before switching to a portfolio with higher risk.

    Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/

    0

    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post
    MT2020

    MT2020

    Level 7. Grand Master

    Answered on 06 Mar 2020

    Its good that you choose to start. The first step is always the most important step! You should start by allocating your pay check into savings, expenses and investing and stick to those budget strictly. But before you even start investing, you should clear out any debt that you already have. All the best to you moving forward!

    0

    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post
    Poon Cheng Song

    Poon Cheng Song

    Level 3. Wonderkid

    Answered on 02 Mar 2019

    This is a tough question. There are just too many information gaps to correctly identify what didnt went well for you.

    For savings to happen, u either earn more than u spend (increase ur income) or spend less (reduce ur expenses) than you earn.

    Sit down and list down ur monthly expenses and identify recurring top 20% of ur expenses that you can reduce or do without. If u are serious about getting started, u need to have a budget and stick to ur budget.

    Ill leave the hows to improving ur income to others to answer.

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    Sogon Leong

    Sogon Leong

    21 Jul 2020

    I totally agree
    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post