Reply to In our 50s, have never been able to create wealth

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[quote=Anonymous][quote=Anonymous]It isn't too late.

I read books to learn what to do. Basically, I invested into Vanguard's S&P fund. If my company at the time had a 401K with a match, I put money into that and had it taken directly from my paycheck.

We also controlled spending. Bought a house in a neighborhood many would be too snobby to live in but the house is paid off now. We drove old cars and never had a car loan. My cars never impressed anyone and neither did my house.

The Millionaire Next Door is a good book to read.

I also recommend Mr. Money Mustache: https://www.mrmoneymustache.com/tag/investing/

Also, read about Wade Pfau's 4% rule. This rule states you can live forever off of 4% of your investments. If you have one million saved, according to his theory, you could live off of $40K without touching the principal. This rule may not be quite right if you are in your thirties (for any younger people reading this).

Hope it all goes well!

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I will add that we made it a priority to save. At one point, we saved around 48% of our income. You can imagine...we did not have a fancy life at all. I remember the HR guy at work asking if I had made an error with how much I was saving into my 401K. That was funny. Meanwhile, he was probably paying $13 for one martini at office happy hours.

When you save more, you are proving to yourself you can live on less. When you can live on less, you don't as much later.

Also, exercise and do strength training because assisted living is extremely expensive. You want to put that off as long as possible.

You can get very far in just ten years.

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