Think it’s too late to retire rich if you don’t have savings in your 40s? Think again. With focused effort, it’s possible to go from financially strapped to millionaire status within a decade or so.
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Entrepreneur Courtney Robinson was featured in an interview on the “BiggerPockets” Money podcast and YouTube channel, where she shared her journey from financial struggle to financial security. She grew up with a frugal lifestyle and remained committed to it throughout her life, opting for older cars, home-cooked meals and matinee movies. Of course, as her family expanded, maintaining this lifestyle became increasingly challenging.
However, Robinson was able to get herself on track with a few tips and tricks she shared on the podcast. Here’s how she did it.
Also see how to become rich in five years.
Scrutinize Your Budget and Cut Costs
Take an honest look at where your money is going each month. Categorize expenses as “needs” like housing, food and transportation versus “wants” like dining out, vacations and hobbies. Prioritize needs and reduce wants.
As Robinson said on the podcast, her husband “realizing needs before wants was the biggest impact.” Recognizing essentials versus luxuries allows you to divert more cash to savings and investments.
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Grow Your Income
Boost earnings by negotiating raises, finding a higher paying job, monetizing skills into side gigs or starting a business. Robinson worked constantly — “28 days a month” — but increased her income from $15,000 to $57,000 in just four years.
As she said, “I owned a yoga school [and] I was always happy just making [grocery money].”
However, Robinson was thrilled the business continued to expand and grow and make more and more money. Essentially, she was able to leverage a skill she had to generate a larger income.
Pay Off High-Interest Debt First
Attack credit card balances first to avoid wasted money on interest. Robinson paid off $11,000 in credit card debt and other obligations she inherited after her divorce. Eliminating debt provides cash flow to direct toward retirement savings.
Invest Often
Even small amounts count when you start young. But late is better than never. Robinson’s husband had just $48,000 saved at 50, but consistently invested in retirement accounts. As an old Chinese proverb says, “The best time to plant a tree was 20 years ago. The second best time is now.”
Leverage Real Estate
Robinson bought rural land and built a cabin and she rents it on Airbnb, creating nearly passive income. She also strategically bought and sold a home for a profit. Real estate appreciation and income can significantly boost net worth. Robert Kiyosaki, investor and author, says “90% of all millionaires become so through owning real estate.”
Embrace Frugality
Robinson took pride in driving older cars, buying in bulk and DIY projects over hiring out — “I would rather be rich than look rich.” Adopting an anti-consumerist, frugal mindset conserves funds for investments.
As she said, “I kind of took pride in my husband driving around” in a used truck.
Have an Entrepreneurial Mindset
Robinson’s husband ran multiple side businesses in construction and martial arts to generate extra income. An entrepreneurial spirit can uncover opportunities for both cash flow and fulfillment.
Take cues from Mark Cuban, billionaire entrepreneur, who said, “The number one reason people fail in life is because they listen to their friends, family and neighbors.”
Relocate To Save
Sometimes moving to a lower cost area can drastically reduce living expenses. Robinson resides in rural Arkansas where a decent lifestyle costs far less than coastal cities. Moving opens up chances to save and invest more. Robinson’s frugal lifestyle costs around $40,000 annually, largely thanks to Arkansas’ low prices.
While becoming a millionaire after 40 requires effort and sacrifice, it’s possible in less than a decade through smart budgeting, higher earnings, disciplined saving and calculated risk taking. Robinson and her husband reached seven figures in just 10 years, proving with persistence, savvy money moves can help achieve “late start” retirement success.
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This article originally appeared on GOBankingRates.com: How To Go From Broke in Your 40s to a Millionaire in Your 50s: 8 ‘Late Start’ Retirement Tips
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