When should you start Investing?

No need for any calculations or discussion here. The simple answer to this question is – As early as possible !

WHY?

  • One- Delaying to plan for the future would mean investing more later to keep up with what you’ve missed
  • Two- when you start early, it allows you to take more risks and aim high returns.
  • Three- If you fail to plan NOW, you plan to fail LATER.

It’s always better to maximize savings in your early years. As you grow older, it would be difficult for you to commit more money due to responsibilities.

Not having enough money may not be an issue when you start investing early. Even small sums put aside regularly can build a handsome corpus over a period thanks to the power of compounding.

Here’s a simple calculation- Suppose you want to have Rs 50 lakhs when you are 55. If at 25, you set apart Rs 3,500 every month (assuming a return of 8 percent), you would be on your way to achieving this goal. But if you were to put off this investing decision by 10 years, you would have to invest as much as Rs 8,500! Setting aside a higher sum when you have other commitments would be a tough task (in most cases –effectively impossible).

Maximizing saving in the initial years doesn’t mean that you should live the life of a miser.  You must spend money for pleasures- but in a self disciplined way. Investing from early on could give you regular, handsome sums at various stages of your life. It merely postpones your spending. Begin investing now, and you might have more money in your hand in your thirties, when you may want to spend on something substantial- For example, a new flat/villa for your family.

The biggest advantage of investing early is that it allows you to take risks. What you thought would be a jackpot may turn out to be a crackpot. But, you can write it off to experience without too much agonizing. Later in your life such a loss could be expensive, and you would also have less time to rebuild your wealth and recoup your losses.

Don’t know how to find money to invest? Click here for a perfect tip. It works !

The world of investing is very interesting. Investments, if properly done, would help you earn more money than you thought. Would like to learn more? You’re at the right place. Our beginner’s lessons are for you.

Have a nice day!

You may like these posts:

  1. What is investing?
  2. Why is investing important?
  3. What is the risk involved in investing?

1 Response to “When should you start Investing?”

Mickey

November 3, 2011 at 6:35 pm

That’s more than seisnlbe! That’s a great post!

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