Is It Too Late for You To Build Wealth the Easy Way? Here’s What To Do Instead
Written by
J. Arky
Edited by
Amen Oyiboke
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
When it comes to cultivating your finances and growing them into sustained wealth, the best thing to do is start early so you have time for your investment to compound. For some, that means starting to move your money strategically when you are young and for others, that lesson might only sink in once too much time has passed.
Find Out: 6 Subtly Genius Moves All Wealthy People Make With Their Money
If you are worried that it might be too late for you to build wealth the easy way, do not panic. You might not have the days, weeks, months, and years to rely on, but here’s what you can do instead.
Utilize Automation
Automation is the secret weapon in removing emotion and limiting decision fatigue when saving for retirement, according to Ashley Weeks, wealth strategist and vice president at TD Bank.
“For late starters, this can be as simple as electing to defer a larger portion of each paycheck into a workplace retirement plan,” Weeks explained. “Automated investing ignores short-term market fluctuations and ensures money is invested before it can be spent.”
Take Advantage of Catch-Up Contributions
Christine Lam, an investment advisor representative at Financial Investment Team, noted that if you’re 50 or older, you have access to a powerful savings tool called a catch-up contribution. “This provision allows older workers to contribute more than the standard annual limit to their retirement accounts, helping make up for years when saving may not have been a top priority,” said Lam.
“In 2025, individuals can contribute an extra $1,000 to traditional or Roth IRAs, and an additional $7,500 to employer-sponsored plans like 401(k)s, 403(b)s, and most 457 plans,” said Lam. “That means someone participating in a 401(k) could save up to $31,000 in one year ($23,500 standard limit plus $7,500 catch-up).”
Spend Smartly
Keeping up with the Joneses is a thing of the past, even for those who have acquired wealth. For those still looking to obtain it, Anthony DeBenedictis, managing partner at Avanza Capital, noted that pulling back on spending and accounting for every penny is the smart way to grow your wealth, no matter where you are in the process.
“This year we’re seeing even some of the wealthiest stakeholders in our company rethink their luxury purchases,” said DeBenedictis, highlighting items like high-end watches, designer handbags, and exotic cars. “They certainly are not slowing in popularity, and it’s definitely not because people can’t afford them. But it is because they’re making smarter and more strategic decisions. There’s a lot more caution out there, along with a lot more opportunity in terms of placing capital. Economic and market conditions are playing a very big role in stock market volatility. Slower growth shifts in the federal reserve policy are encouraging caution.”
At the same time, DeBenedictis described that there has been a big shift in private equity venture capital that’s showing capital flow to opportunities with a lot more measurable growth.
“These include clear returns for an exit strategy or higher valuations,” said DeBenedictis. “It’s really not about prestige or status. It’s about caution and opportunity.”
More From GOBankingRates
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
