I am 45 and have been bad with money and saving/investing but trying to right the ship. However I know I’m pretty screwed.
Here are my stats-
Income- $95k IRA- $14K; maxed out for 2024 401k- $42k; will be about $8-10k short of max for 2024 Savings- $60k in hysa
I rent paying $1500, no other debts. Would like to get a house, but don’t see it happening.
I am trying to learn more about saving and investing. Trying to put a plan together but overwhelmed and think I won’t make it.
Here’s the thing: You’re not screwed. Not even close. You’re starting late, sure, but you’re starting. And that matters more than when you began. Money, at its core, isn’t about timing or perfection; it’s about progress. Consistency and patience have built far more wealth than any get-rich-quick scheme ever has.
Let’s start with the good news. You’ve already done several things right. You don’t have debt, which is a bigger deal than most people realize—it means every dollar you earn is a dollar you control. You’ve built up $60,000 in savings, giving you a solid safety net that can handle life’s curveballs. And you’re contributing to retirement accounts, which means the hardest part—getting started—is already behind you.
But I get it: starting late can feel overwhelming. The financial world is intimidating, full of jargon and complexity that makes even the basics seem out of reach. The trick is not to tackle everything at once. You don’t need to know everything to build wealth. You just need to focus on a few key moves that make the biggest difference.
One of the easiest and most effective ways to build wealth is automation. Set up automatic contributions to your retirement accounts so they happen every month without you needing to think about it. Even small increases over time—just 1% more of your income every year—can make a big impact. Your $60,000 in savings is also a huge asset here. Keep enough in your high-yield savings account for 3-6 months of living expenses, but consider putting the rest to work in investments. Let that money grow instead of sitting idle.
When it comes to investing, you don’t need to overcomplicate it. Forget about picking stocks or timing the market. A simple, low-cost strategy—like an S&P 500 index fund or a target-date retirement fund—works wonders over the long term. The market will go up and down, but history shows that it trends upward over time. The secret is patience. Don’t panic during downturns, because that’s when most people make costly mistakes.
Now, let’s talk about what “making it” actually means. You mentioned wanting to buy a house, but it’s worth asking yourself why. Is it about security or stability? Or is it because society tells us homeownership is the ultimate financial milestone? Renting isn’t a failure. It can be a smart financial decision if it lets you focus on building your investments. Similarly, retirement doesn’t have to mean an endless vacation on a tropical island. It just needs to mean living comfortably on your terms. Start thinking about what that looks like for you. Once you have that vision, you can work backward to figure out how to fund it.
At 45, you still have time. Compounding works wonders even if you’re starting later than you’d like. Let’s say you invest $40,000 from your savings and add $10,000 annually over the next 20 years. With a conservative 7% annual return, you’re looking at more than half a million dollars. That’s not pie-in-the-sky dreaming—it’s just math. Add in Social Security and your 401(k) contributions, and you’ve got the foundation for a solid retirement.
The most important thing is to focus on what you can control. You can’t change when you started, but you can control what you do now. Every dollar you save or invest today is a step forward. Every book, podcast, or conversation that helps you learn about money gets you closer to confidence and clarity.
You’re not trying to sprint to some imaginary finish line. This is a marathon, and every small step you take adds up. The fact that you’re here, asking these questions and taking action, shows that you’re already ahead of where you were yesterday. That’s progress. And progress, not perfection, is what really matters. You’ve got this.