I’m 32 with No Retirement Savings

Are you 32 years old with no retirement savings but want to get back on track and become financially independent?

Here’s a reddit thread from a 32 male who is dealing with the same issue.

Rent and Utilities together at about $1350/month.

Basically what the title says. Lived my 20s without a care in the world and partied essentially every Thursday-Sunday.

Recently have gone sober and trying to pick up the pieces of my life. What are the starting steps to building up wealth?

I’m well aware my current situation is due to my own actions, but I don’t regret the time I spent having fun.

I was in the same boat as the OP back in 2018 during my travels in Southeast Asia. I was 32 years old and barely scrapping by as a struggling freelancer due to my partying habits and poor financial habits.

Now, I’m very comfortable with a retirement savings, emergency fund, and growing portfolio of stocks, REITs, and cryptocurrency.

32 Years Old with No Retirement or Savings? Here are 7 Things to Do Now

At age 32, you still have around 27 years to prepare for your retirement if you plan to stop working around age 60. There’s still enough time to retire early if you increase your savings rate, cut out unnecessary people and expenses, and invest for the long run.

Here’s what my advice from a 32 year old who wants to turn their finances around:

  1. Start an Emergency Fund: You need to put away at least $1,000 to build an emergency fund to prevent yourself from going into debt when you have an emergency expense. Open a high yield savings account and keep the money earning interest until you need it.
  2. Pay Yourself First: Paying yourself first is the #1 financial habit you must take to fix your finances. Save at least 10% of your paycheck or income and stash it away for savings and investments. Do this before you pay any bills or buy something.
  3. Max Out Your 401(k): If your company offers a 401k or 401k matching then max it out to give you a head start on your retirement savings. If your employer doesn’t offer a 401k match then open a Robinhood retirement account to receive 1 to 3% matching on your contributions.
  4. Open a Roth IRA: A Roth IRA allows you to save money for retirement and make withdrawals tax-free once you stop working. You can buy a solid ETF like VOO or QQQ to invest in the stock market or purchase individual stocks with growing revenue such as Tesla (TSLA), Nvidia (NVDA), Microsoft (MSFT), etc.
  5. Invest in Bitcoin: Investing in Bitcoin can help you play catchup and boost your retirement savings. Bitcoin generally outperforms stocks & ETFs over the long term.
  6. Cut Expenses: Quit expensive habits such as smoking, drinking, and partying to save money. Consider moving back home with your parents or getting a roommate to reduce your rent expenses. If your hometown is too expensive then move to a cheaper city or consider moving abroad to reduce your expenses even further.
  7. Track Everything: Start tracking your income and expenses to see where your money is growing. Track your investment portfolio and any dividend income you may receive. Stay consistent and try to improve every 3 months (quarter) and each year.

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