How do you make up for lost time when you have started planning your finances, especially your investments, after a late start. The first part of a two part series
Edited highlights
0:22 How do you make up for lost time when you start late for your investments and financial planning for your future needs?
0:29 In the first part of this two part video series, we will cover the larger strategy and approaches to address the situation
0:36 In the second part of the series, we will discuss the buts and bolts that you need to take care of
1:38 Not everybody has a late start because of laziness or procrastination
1:49 There could be a responsibility in the family, an outstanding loan or there could be time consuming higher studies
2:47 One of the first things to do is to try and increase your work life and have reasonable amount of control on expenses
3:00 When you are off to late start, you have a smaller period to save a large amount
3:14 If you chase very high returns, you often end up investing in very high risk investments where you would have normally not invested in
3:48 Instead of going for higher risk investments, try look for ways to increase your work life
4:11 To prolong your work life you will need to keep enhancing your skills and look for new and emerging careers
4:17 Explore if you can migrate on to a new profession which can take you even further
4:30 Remember, these days it is not unusual for people to have second careers after retirement since retired lives have become long
4:43 There are more opportunities and people are active
5:18 With a prolonged work life, you are at ease to plan your financial moves
5:25 You need not take any unnecessary risks
5:48 Since your investment amounts need to be larger, it is important for you to keep a leash on expenses especially expensive credit card debt, personal loans and consumer loans
6:22 Personal loan, consumer loan and credit card debt is making you use future income which you are trying to create
6:44 There are other loan like home loans that are helpful
6:58 A home loan taken early in life will help you repay it much before retirement
7:15 Try to future wealth or savings through your pay structure
7:37 Looks for jobs with a pay structure that has plenty of retirement benefits like superannuation funds and wealth creation in the form of stock options
8:26 Evaluate whether some of your financial goals are feasible and if needed, be ready to make a compromise
9:10 Remember, you can upgrade items like your home as your income keeps increasing
9:34 Prioritise your goals. When you are off to a late start a lot of the financial requirements happen in quick succession
10:57 Do way with the goals that you know you can't realistically achieve
