From the book, “Start Late, Finish Rich,” by David Bach (Broadway Books, 2005).

In David Bach’s book “Start Late, Finish Rich,” he says that it is never too late to save for retirement. The only question is: Can you save $10 a day and start to forgive yourself for what you haven’t done?

Here’s what you can do, starting today, that will give you some peace of mind about your financial future.

Find your double-latte factor

Bach’s secret for successful saving is called – the latte factor – and it’s the simple idea that we all have more money than we think, but we spend it on small things.

If you spend $5 a day on coffee and a bagel, that’s nearly $2,000 a year-money that could help you catch up on your savings. If you and your spouse can each save $10 a day, starting at age 52, and invest the money mutual funds that gives you an average rate of return of 8 percent, then by age 70 you would have $294,449 in savings.

If the company you work for can match your investment, such as through a 401(k) plan, that pot of gold could grow to $441,673 -not bad for a late starter.

Now that you’ve found your latte factor, it’s time to look at your double-latte factor. That’s the amount you can save by cutting back on many of your monthly expenses.

To help you discover where you can save money daily, track your expenses for a day. Take the time to write down every penny you spend.

Now make a list of all your monthly expenses. Look for at least three things you can cut back on. If it’s your cable plan that could be adjusted to save you some money, pick up the phone right now and call your provider. Or perhaps your local Internet provider is offering better rates than when you first signed up. You won’t know until you call.

If you invested that $25 a week, again assuming an 8 percent average annual investment return, after one year you’d have $1,404, after five years you’d have $8,236, and after 10 years you’d have $20,339.

Shed your debt

Unfortunately, many of you who are starting late aren’t just starting from zero. You’re starting from less than zero. Except for your mortgage, which is tax-deductible. Debt is bad, so get rid of it as soon as you can.

Pull out your last credit card statement and find out what your interest rate is. Then find out what the competition is offering. Keep your junk mail for a week and actually read the credit card offers you get. Most are offering zero percent rates for up to nine months. You can also check for great deals on consumer Web sites such as www.lowermybills.com and www.bankrate.com.

Then call your credit card company and ask to speak with a supervisor. Share with that person your plan to close your account unless the company can make you a better offer. You’ve got nothing to lose, so be bold and honest. Share the best competitor’s offer and ask the company to match it.

If you do make the switch to a low-interest-rate card, be sure to read the fine print closely. Some cards will increase your interest rate to 19.99 percent with one late payment and up to 29 percent with two late payments.

Finally, cut up your credit cards, hiding just one in a hard-to-get-to place for an emergency, and start paying your bills with cash instead.

Pay yourself first

Most self-made millionaires make a decision at a young age to “pay themselves first.” Paying yourself first means that the first person who gets paid when you earn a dollar-even before Uncle Sam-is you. The only legal way to do that is to use a tax-deductible retirement account like a 401(k) plan, SEP IRA, or deductible IRA.

The magic formula, whether you earn minimum wage or $100 an hour, is to save at least one hour a day of your income. A great goal for late starters is two hours a day of income.

If you don’t already have a retirement account, set one up

Turn your hobby into cash

According to the Bureau of Labor Statistics, there are more than 6 million self-employed people working from home in the U.S. Many of these entrepreneurs are people over the age of 50, who have started a part-time business. A home-based business can mean working as a consultant for your old company or creating a part-time business on the side. And with the Internet-in particular, online auction sites like eBay-it’s getting easier to start a business with little or no money.

Ten easy steps to saving money daily

1. Make your coffee at home-or drink the free stuff at work.

2. Pack your lunch, as well as any midday snacks.

3. If you drive to work, carpool with a colleague, or take public transportation.

4. Avoid ATM fees by planning ahead and using the machines at your own bank.

5. Cut back on dining out-when you do, go for the “early-bird specials.”

6. Stop smoking-a pack of cigarettes costs about $7.

7. Catch a matinee instead of paying full price for a movie. (Or rent a video.)

8. Stop playing the lottery.

9. Get a “wet cut.” Most salons charge about $10 to blow-dry your hair-so go home and dry it yourself.

10. Plan your meals for the week, and then shop once.

Copy the Story Link