BusinessNews Publishing - Summary: Start Late, Finish Rich: Review and Analysis of Bachs Book

Book Abstract

Even if youve neglected planning for your retirement until youre in your thirties, forties, fifties or sixties, its still possible to get your own personal financial house in order and finish rich. Specifically, there are five simple strategies you can use right now to get back on track and stop worrying about your financial future:

The key beliefs which underpin the start late, finish rich philosophy are:

1. Its never too late for you to start working towards having a rich retirement, but you should start working on it today.
2. Even if youre buried in debt, there are still things you can and should be doing to prepare for the future.
3. You dont have to make a lot of money to be rich. Instead, you need to be smart about how you handle the money you have.
4. The best way to get rich in real estate is by starting small, not by taking huge risks.
5. You can get rich by progressively eliminating the ways you currently waste money and then using that money better.
6. It is possible to start a business on the side which you can use to get ahead while you continue to earn a paycheck.
7. You dont have to invest in stocks to get rich.
8. You can spend less, save more and make more without seriously impacting on your current lifestyle.
9. You can and should reconnect with your dream of financial freedom and go after it regardless of your age.

   Its only too late if you give up. If youd never run a mile and I told you to run a marathon today, that would seem impossible, too, wouldnt it? What smart runners dont do is go out and try to sprint 26 miles the first day. They build up to it. Learning to save is a lot like exercise. You need to build up gradually. You dont go from saving nothing to saving $2,700 a month. Thats absurd. Youve got to start slowly. You need to keep it simple. Whether you know it or not, there is a way you can spend less and save more and if you do that you can almost certainly start late and finish rich. And if you spend less, save more, and EARN more, you can definitely start late and finish rich even richer than you might have if youd started early. Easier said than done, you say? Absolutely. But trust me if you do it right, its not nearly so difficult as most people think. Its certainly not impossible. Ive seen plenty of people do it. And I know you can do it too!

   David Bach

About the Author

DAVID BACH is a financial educator. He is the author of several widely acclaimed books including The Automatic Millionaire, Smart Women Finish Rich and The Finish Rich Workbook . David Bach also gives keynote speeches and has developed a seminar series which focuses on personal financial planning. Prior to starting his own firm, Mr. Bach was a senior vice president of Morgan Stanley and ran a managed investment fund.

The Web site for this book is at www.finishrich.com .

Important Note About This Ebook

This is a summary and not a critique or a review of the book. It does not offer judgment or opinion on the content of the book. This summary may not be organized chapter-wise but is an overview of the main ideas, viewpoints and arguments from the book as a whole. This means that the organization of this summary is not a representation of the book.

Strategy #1: Lighten Up

Everyone always says, Gee, I wish I had started saving more when I was younger. Get over it and give yourself a break. Acknowledge that yes, it would have been nice to start earlier, but you didnt, so concentrate on moving forward from where you are now. Its never too late to get started if youre genuinely determined to finish rich.

If youre completely honest with yourself, there are probably some very good reasons why you havent got around to doing much about your retirement planning until now. For example:

• Life may have thrown you some unexpected financial setbacks the death of someone close to you, divorce, illness, poor career choices, lack of education, etc.
• Unfair things may have happened to you in the past financial dealings with dishonest people, companies going into bankruptcy through no fault of your own, etc.
• You may have meant to get around to saving some money but there were always pressing financial needs elsewhere.

Its time to acknowledge that you cant go back and fix the past. If you dont bury the past, your financial future will always be held hostage. Its time to stop thinking about what went wrong in the past and start focusing on where you want to be in the future financially.

Try throwing your own Goodbye to What Ifs party. Take a blank sheet of paper, and write down as many of your own personal If only I had.... statements as you can think of. Be completely candid, and write down everything youve been mulling over for years. When youve finished making that list, invite a friend or a few friends over and literally set fire to your list.

Move onwards and upwards. Put aside worrying about whether life has been fair in the past and focus on moving forward from where you are right now. Forget all your woulda-coulda-shoulda scenarios and start acting to have a better future.

The interesting thing about finishing rich is that ultimately its not about the money. What its about is the feeling of freedom that comes from knowing you are doing something about your worries and fears that youre in control of your destiny, and not at the mercy of forces beyond your control. Its about the satisfaction that comes with buying back your life from living paycheck to paycheck. Its about having the security and independence to focus on LIVING MORE instead of just having more.

David Bach

Too many people (maybe youre one of them) are working so hard to pay their bills and get ahead that their lives have gone missing. Its time to change. They and you deserve better. Many people wish for a better life. Smart people learn, plan, and take action to get a better life.

David Bach

Particularly if youve started late, the only way you can live and finish rich is if you begin making it happen. The time to start is today.

David Bach

Its never too late to start.

David Bach

Strategy #2: Spend Less

Almost everyone makes enough money over the course of their life to be wealthy. The problem isnt so much how much you earn, but what proportion you spend and what proportion you save. Before you worry about earning more, find some practical ways to save a greater percentage of what you already earn.

If youre at all normal, when your income jumps, so does your spending. Its just a fact. We earn more, and then we spend more. Then we need to earn even more, and then we end up spending even more. And if were not careful, the more we owe.

David Bach

To finish rich, you need to break this vicious cycle and find practical ways to save a greater percentage of what you earn every year. Four practical things you can do to spend less are: