Mel shares: why it’s never too late to start investingMel shares: why it’s never too late to start investing

Melissa Browne is a financial educator, award-winning ex-accountant and ex-financial advisor, and author of global bestseller, ‘Unf*ck Your Finances’. From her ‘Uncensored Money’ podcast to her 8-week ‘My Financial Adulting Plan’ course, Mel is passionate about helping people build wealth.

One of the questions I’m asked the most, particularly by women in their late 40s or 50s, is ‘is it too late to start investing?’ To which my answer is, absofreakinglutely not. Here’s why.

In my early thirties, I gave all of my divorce proceeds and money in my business and personal bank accounts to charity (a move I instantly regretted) after my ex-husband said I wouldn’t make it on my own. I went into five figures of debt and had to move into a frat house with four mates in a mouldy basement bedroom. Fast forward to today, and I’m a multi-millionaire gaining financial independence from the strategies I put in place for myself.

Shift your money mindset

There’s a perception in society that once you reach a certain age, it’s all over. We see that in the media, how we’re expected to look as we age, and the workplace. When it comes to women, this may be compounded further by a gendered ageism that simply doesn’t exist for the blokes. It’s no surprise then that this filters down to what we believe is possible for us when it comes to our finances.

If you’re a 45-year-old woman, you potentially have another 40-45 years ahead of you. Chances are, you also don’t have enough superannuation or investments thanks to wage and super gaps which means it’s even more important to prioritise or start investing. It’s about putting your own financial oxygen mask on first, realising it’s not selfish, and that you still have time—you just need to start.

Start with an affordable amount

If you’re concerned about not having the money to invest, it’s realising that finding more cash is a skill. In my community, we have many women in their 40s and 50s who have invested for the first time. Many have also ‘found’ more money to invest even after they finish paid employment—from cash rewards sites and pet sitting, to renting your closet and selling your skills online.

These days, many investment platforms make it easier than ever to start small and build over time, whether that’s through features like round-ups, or low to no minimum investment amounts.

Round-ups

Make every dollar count by investing extra dollars and cents from your daily spend to reach your goals sooner.

Check out round-ups

Consider your goals, not your age

The concept of ‘age-based’ investing is becoming more outdated as we live longer and have more choice in how we live. For example, if you follow the traditional approach, at my age I should be slowing down, building liquidity, and having a more balanced portfolio—yet the opposite is true. Meanwhile, Lauren who works with me is in her late thirties, purposefully childfree, and wanting to stop work in the next five or so years. Her investing approach is very different to a peer who might have kids in private school with only one parent working.

It’s about understanding what you want, your goals, and building the finances to suit. No matter your age, having liquidity is important for when ‘life happens’. As you near retirement, having easy access to more cash so you don’t have to dip into your investments is even more important.

Prepare for an uncertain future

Australians are expected to transfer $3.5 trillion worth of wealth between generations over the next 20 years. I’m already seeing people expecting that transfer and asking for it earlier (in some cases, before they’ve developed their own financial literacy or plan). In other situations, I’ve seen large sums of money sit in high-interest bank accounts because people lack the financial confidence to make a decision and don’t want to squander their inheritance (yet that’s essentially what they’re doing by not putting it to work). And some of us (like myself) won’t receive an inheritance at all.

No one knows what the future might hold, how expensive the cost of living might become, or what options for retirement there might be—which is why it’s so important to invest and set up your finances so that any additional income you receive (like an inheritance) will be the cherry on top, rather than the whole dish.

Wrapping up

Investing is about creating choice. There’s a myth that working harder and harder is enough to be wealthy. Or that paying off a home as fast as you can will give you choice. But unless you’re willing to downsize or bring in a boarder, owning a house won’t generate you an income.

Whether you’re receiving a legacy or building your own, financial education and growing the confidence to make smart decisions will be key to making the most of your money and having more choices in life—and it’s never too late for that journey to begin.

Learn more about simplified investing on Sharesies.

Melissa Browne is not associated with Sharesies Australia Limited or its related companies. Views expressed by Melissa Browne are their views and do not necessarily represent the view of Sharesies. If any financial product or stock has been mentioned, you should obtain that product's disclosure documents before any decision on whether to acquire the product. Information provided is general only and current at the time.