Part 2/13:
Return: The rate at which your investments grow
Time: The period your money has to compound
Of these, time is unchangeable—we cannot go back and start investing at 19 or 25. But the good news is, you can influence the dollars you invest and the return you earn. If you're in your 40s, this means intensifying your efforts in these areas because your window for growth is limited.
Assessing Your Financial Situation
The first step to wealth-building at any age is honest assessment. You need a clear picture of where you stand:
Savings: Do you have any emergency fund?
Investments: Do you have 401(k), IRA, or other investments?
Debts: What debts do you carry, and what are their interest rates?