Many people feel that life is more or less over by the time you reach 60. However, this couldn’t be further from the truth. The fact is: you’re never too old to get rich or to live the kind of life you’ve always dreamed of. Once you’re free of workplace stress and the difficulties of starting a young family, you finally have the time to focus on what you want to do.
Which means it’s actually easier to get rich after 60 than it can be in our youth. You can build wealth, start a business, and even become a millionaire – all in this second phase of life.
You’re never too old to get rich with these 6 steps to starting a business
After the age of 50, our priorities begin to change and many start looking into business ownership as a means of having more control, a better work/life balance, creating greater wealth, and leaving behind a legacy.
Maybe starting a business is something you’ve always wanted to do or, maybe, it’s just a means of getting more work before retirement. Sure, it may be a lot of hassle and a lot of hours: but your age should never stop you.
The older you are, the greater your chance of success. Those over 50 are actually twice as likely to be successful as those under 25.
So, how can you get started before you strike out on your own?
1. Recognize your strengths
Okay, this is probably the most basic factor to consider before getting started, but keep in mind that you have more capacity later in life in several areas. The first? Experience. You’ve been through the ups and downs of business and life, meaning you can bring something that a younger person, with less experience, can’t.
You’ll also be more likely to have a financial cushion to help you launch as well as have a secure network to call on as potential clients, customers, or support systems.
2. Check your financial fitness
A financial checkup is a great idea before you get started. Scrutinize your spending to see where you can cut costs to save and work to have at least three years’ worth of expenses saved up before you get started.
WARNING: Do NOT tap into your retirement funds! It may be tempting, but it’s an absolute last resort. You need that kind of fall back for when retirement age comes!
3. Embrace free resources
There are so many free resources out there today that provide business mentoring, templates, education and so much more for those looking to get started. Don’t forget to take advantage of these wherever possible – they’ll make an incredible difference in the long run and, if they’re free, there’s no risk associated.
4. Your value proposition
Reinventing yourself? Sure, it sounds like a great idea in your later years, but when it comes to building your business, be sure to redeploy skills you’ve already used throughout your career to secure your future.
Look at the market and see what you have to contribute that no one else is doing. Then, be the first to do that job, and do it well.
5. Partner up
Be sure to consider a senior/junior partnership. When an older entrepreneur pairs with someone younger, it creates an unbeatable combination: tech savvy and enthusiasm with capital, resources and more reliable contacts. You can easily build a business that goes on for more than 20 years with this kind of setup.
6. Sell it
Yep, even if your core business idea has nothing to do with selling, you’ll still have to sell your idea. Marketing and selling is the great stumbling block of building a business. See if there are any free resources to help coach you through this, and even consider things like acting or improv to help keep you on your toes and learn to express yourself.
How to become a millionaire in your 60s
If you’re not interested in starting your own business, there are still so many ways to get rich after 60. Crossing the seven-digit threshold takes more than making a high salary – most of the time, it comes down to simple saving.
First of all, be sure to consider your mindset. Remember that it won’t happen overnight and will require some sacrifices. However, there are just a few habits that will help you build your wealth dramatically.
Consider an advisor
The right financial advisor can be invaluable. Why? Because they can help you clarify your financial goals and create a roadmap for how to get there, no matter where you are today.
Start investing early
Compound interest can do the hard lifting for you in terms of accruing a high net worth. As they say: the best time to start investing was yesterday, but the second best time is today… regardless of your age. This also includes contributing to your retirement fund early and often.
Follow a strict budget
Okay, a lot of people shy away from the word budget, but it shouldn’t scare you: it should empower you instead. Figure out what kind of budget works for you and your ideal situation and you’ll be able to see where your money is going and ensure it is best spent/saved wherever possible.
Live within your means
Yep, these last few points don’t sound very fun, but building wealth is more about what you keep rather than you make. Remember that a dollar saved is better than a dollar spent on an unnecessary purchase.
Build an emergency fund
Even if you live within your means and follow a strict budget, an unexpected emergency can easily put you behind and on struggle street. So, be sure to have an emergency fund that will cover expenses that aren’t part of your budget.
Take advantage of windfalls
No matter where it’s coming from: treat every bit of extra money that comes your way as an opportunity to build wealth. You may be tempted to blow that cash, but even setting aside 10 to 20 percent of your windfall to indulge will leave you with profit (while still having some fun!).
Manage your debt
The less debt you have, the closer you’ll be to becoming a millionaire. Tackle your debt as quickly as you can. Pay off your balances from the highest interest to the lowest, to make even debt-paying a savvy tactic.
Earn more money
If you earn $40,000 and set aside just 12 percent of your pre-tax salary toward retirement, you’ll end up with a million by the age of 60. However, if you can earn extra money, you’ll get there even faster. And that doesn’t have to mean an extra job… Read our blog on 7 creative ways to make money in retirement for unique ideas on how to earn more.
When a lot of people think about getting rich after 60, they think only of celebrities with big names who’ve acquired amazing success after retirement. However, it’s not just the big players that can get rich after 60.
Whether you start your own business or merely get savvy with your money, it’s entirely possible to become a millionaire in your 60s, or at least be very well off. All you need is the patience, drive, and planning to get you there.
