With all of our daily obligations, it’s natural to feel like we’re fighting the clock. But when it comes to investing, time is your biggest asset. The sooner you invest, the longer the time your funds will have to potentially grow.
If you start investing just a little bit of money regularly (think $5 – $50), that money has the potential to earn returns over time. If you reinvest those returns, they can earn even more returns. The sooner you start investing, the more powerful $50 becomes.
On the other hand, if you delay investing, your money weakens. That’s because the longer you wait to start investing, the more compound returns you’re potentially giving up.
Take the following chart from J.P Morgan:
While Susan only invests $50,000 compared to Bill’s $150,000, Susan actually ends up earning more money than Bill, since she started investing earlier.
You might be saying, “OK, I’ll invest. But how do I know my money will earn these returns?”
No one can promise you guaranteed returns, and there is a risk of market fluctuations. However, over the long-term (think over the course of several years), your money will very likely earn returns. That’s because the stock market has historically risen over time, and has always recovered – even after crashes like ’08.
So don’t wait, take advantage of time.