“the sooner the better”
YOU must have heard of this popular phrase a lot of times by a number of people throughout your life. But, this phrase holds true for investing as well.
As human beings, we intend to keep everything for tomorrow, which never comes. This philosophy applies even for investment. Inculcating good habits during the early stages of your life pays off in the long term.
One of those habits is to manage your finances, which includes SAVING and INVESTING. These are important aspects because the early you start, greater is the probability to generate wealth and live a life full of comforts.
In my last blog, I had dealt with the importance of money in your LIFE. While there is no doubt that money is a necessary commodity to run your lives, at the same time, it is also important to invest your money early in life to enjoy financial independence and security.
If you still do not seem to be convinced on whether you should invest your money then think again. Here are five benefits of investing early:
Time is at YOUR side
This seems pretty straightforward but it is the most important benefit. When you invest early then time definitely is on your side because this will ensure that you’ve far more than those who invest much later in life. It’s pretty simple philosophy as having time on your side means that having a longer time period of being able to save money.
Increase in compounding interest
Secondly, the biggest advantage of being an early investor is the POWER of compounding interest. This means that the power of time value of money. If you invest regularly and at an early age, then it can definitely lead to huge compounding benefits. Let’s take an example. Let’s say you’re 25 years old and working a XYZ Corp. You start to invest 10,000 INR at 6.6% per annum, and you keep on investing for 35 years. So, by the time you retire at the age of 60, you would have easily accumulated a sum of more than 93,000 INR. At the same time, when you’re 35 and start to invest money same amount of money at the similar rate of interest, you would only accumulate around 74000 INR at the age of 60. Therefore, you can clearly see that the compounding have a drastic affect on investment.
Reach your financial goals
If your money is growing or earning you a handsome return because you stay invested, then it’ll definitely help you to reach your financial goals faster. Whether you invest for your marriage, build a retirement corpus or invest for some emergency, early investment helps you in long term goal
Guarantee YOU a better quality of life
I’m sure you know the reason why people work so hard for their entire lives. Yes, you gotta right. They do it to earn money and improve their QUALITY OF LIFE. Once you start to invest early in life, it will automatically improve the quality of life provided you do it right. If you put all your eggs of invest in the RIGHT basket and at a right time, then it is certain that you’ll have enough to sustain yourself and your family.
I hope you’re clear about the magic of investing early in your life as it is surely worth it in the long run.
So, what’re you waiting for?
As Warren Buffet rightly quotes, “The earlier you start investing, the better”. Therefore, ACT now and simply start investing in small amounts to become a millionaire tomorrow!
Let me know your thoughts on why you think it is good to invest early?