It’s never too late if you start now – not too late for an improvement, that is! Image: Faizal Ramli/Shutterstock.com
By: John Grobe“It’s never too late if you start now!” That is a saying that applies to almost everything. It’s not too late to further your education and get a better job. It’s not too late to contribute more to the Thrift Savings Plan and have more money available for your retirement.
Of course, a question that needs to be asked is “Too late for what?” Maybe it is too late for you to end up a TSP millionaire if you start contributing more money and have only ten years of your career ahead of you. However, it is never too late to make an improvement in your current situation.
In a recent article we looked at how setting a little bit aside for a long period of time allowed individuals to retire with a nice nest egg. We saw how financial writer David Bach encouraged people to give up small items in exchange for future financial security. He even trademarked the phrase “The Latte Factor” and makes money selling coffee cups (presumably not for lattes) with his message on them. But, if I’ve only got ten years to go until I’m retiring, skipping a daily latte won’t get me to where I need to be.
Well, Bach has an answer to this conundrum. In his book Start Late, finish Rich he suggests that late starters look for areas where they can make a bigger difference. For example, reviewing your budget might shine the spotlight on such items as: premium cable/streaming services, bi-weekly mani-pedis, Disney World vacations every year, and new seasonal wardrobes each year. Eliminating debt and the interest thereon will also allow you to set more aside. With credit card debt, it’s not the amount you owe that kills you, it’s the interest you pay on that debt.
Consider how you allocate the money you save. Ask yourself the question: “Of the three biggest savings goals (children’s education, buying a home, saving for retirement), which one won’t a bank give me a loan for?” Always set aside money towards your retirement, even if at the same time you’re saving for your children’s education or for buying a home. There is absolutely no reason for not contributing the 5% you need to get the government match to the Thrift Savings Plan.
And remember, wealth is not what you make, it’s what you keep.
If you’re not maxing out the TSP, raise the amount you contribute by 1% every six months until you either reach the contribution limit or the strain on your budget is too much.
It’s never too late if you start now – not too late for an improvement, that is!
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See also,
Legal: How to Challenge a Federal Reduction in Force (RIF) in 2025
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