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In your 40s and behind on your retirement savings plan? Don’t worry lah, you are not alone! Yes, it is a little late but worry not because it is never too late to improve your financial situation.


What you did or didn't do in your 20s and 30s is irrelevant now. The moment is now to begin accumulating wealth. There is no reason why you can't create a prosperous financial future for yourself while you are still in your prime.


Here are some suggestions to help you start planning today to prevent future retirement regrets.


Start a Stream of Passive Income

You've probably excelled in your company or industry by the time you're in your 40s. However, that does not imply that you should stop there. The better you do at work, the more opportunities you’ll have to grow your income.

Yet, that might not be enough.


As there are countless ways to generate a passive income, you would need the whole day to read about every possible strategy.To prevent this and help your brain to start thinking about other ways to generate a passive income, we’ve included some excellent choices below:


  • Rent out your house


If you don’t mind giving up some privacy, you may want to consider renting out your spare room. Having a roommate or the odd Airbnb visitor is a terrific way to kick back and add extra money to your budget.


  • Rent out your items


Do you have any products that you don't use frequently, but that others would be interested in borrowing? You could generate passive income by renting out items like a vehicle, trailer, trampoline, kayak, or even your own yard or swimming pool. All you have to do is post images of your stuff, establish a rental rate, and announce to the world that they are available. Or, if you aren’t ready to tell the world, simply start with your neighbourhood.


  • Earn by spending time with furry friends


Are you an animal lover? Did you know that providing pet services might earn you a nice living? Numerous websites, like PetBacker, make it simple to find gigs with animals. Why not pet-sit at your own home and earn a passive income by caring for someone’s pet? You might also try dog walking, which is a terrific way to be active, have fun, and earn a bit of money.


  • Start a blog


Although starting a blog can be challenging, blogging as a business concept is increasingly popular as a passive revenue source. No, you don’t need to become an internet sensation to become a blogger. You could use blogging to generate passive income by creating sponsored posts, selling affiliate products, or running ads through AdSense. Although it will take time to develop an SEO marketing plan and produce and promote the material, the return on these passive income investments can be as high as RM15,000* per month depending on the volume of traffic you are generating.


  • Join affiliate marketing


Promoting a good or service to an audience is a part of affiliate marketing. You are paid every time someone uses your referral link to purchase the suggested good or service, making it a fantastic passive income source.


  • Sell stock photos online


Do you take photographs as a hobby? If so, it’s time to turn your hobby into a business. If you have a high-quality camera and a creative-mind, you can make money online by selling your images. Stock photo sites like Pexels, Shutterstock, and other online media houses will pay for high-quality photos and videos.

Set A Realistic Goal

Now that you have some ideas on how to make a passive income, it’s time to decide when you want to retire. Already sorted? Then decide how much you want to have saved by that time. The objective of this is to be as realistic as possible. If you're 45 and have no money, retiring in your 50s with RM1 million saved might not be achievable.


Enter your data into a retirement calculator to calculate your goals. The amount you should try to save by the time you reach retirement age and the amount you should save each month can be estimated using this. Making a financial plan to achieve your goals will be simpler if you can identify what your realistic goals should look like.

FIRE Method

For many of us, the idea of retiring early while still having a sound mind and body can be a lofty goal. However, if you’re willing to put in the work and make sacrifices, FIRE could be within your grasp!


FIRE is an acronym for the Financial Independence, Retire Early movement. The FIRE method encourages people to put forth a lot of effort, live within their means, and retire early while still leading respectable lives. 

Consider Extending Your Career

If you haven't been able to save by the time you're 40, you might need to consider extending your career. You might also establish a second business to supplement your income. Above all else, keep in mind not to put all your eggs in one basket. Additionally, you need to have a realistic goal and create a strategy to achieve that goal by having passive income.
Visit CIMB’s website and speak to our personal financial consultant today to explore more about financial savings plans!


This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.