Don't Wait to Start Investing
The difference between investing today and investing tomorrow can be a lot of money. Even if you just invest $1,000 now and waited 20 years or invested $1,000 in 10 years and waited another 10, there would be quite a bit of difference.
Time is money; it's the simple truth. We spend our time working and are paid for it. It takes time for a writer to write a book that they eventually collect royalties on. A teenager spends a few hours of her time watching kids and is paid for it. You have to give up some time to make money.
When it comes to investing, the sooner you start, the more money you'll have. If you had $10,000 to invest over a period of 10 years, if you could, you should invest it all in the first year. You would have to most money after 10 years than if you spread it out. It's just simple rules of compounding.
The younger you are, the more money you can make. Just like investing more will likely make you more, waiting longer will make you more as well. If you want to know the true power of investing right now, just look at this example.
Let's say you're 23 years old and just started a good job. You want to retire at age 65 which is in 42 years/ If you invest $500 every year for 42 years with an average return of 9%, you'll have invested about $26,000. Guess how much this $26,000 will be worth? You'll have about $218,000.
What would happen if you started investing later in life, let's say at age 40? Even if you instead invested $2,000 a year for 25 years, you would have invested $50,000. That is more, so you should have a lot more in the long run, right? In this case, you would end up with $183,000.
When you combine time and compounding, you make a powerful combination. It's incredible how much more money you can make when you start early. Compounding will earn you more money because the money you earn each year will continue to earn money. If you want to retire comfortably, or even early, you must harness the power of time and compounding.
Invest whatever amount you think will work with your budget. There is no rule as to how much you should invest except that it should be as much as you can. What you put away towards retirement should be top priority in your financial budget. Start investing a certain amount now and add to it every year. Soon you may even realize that you might be able to retire early!
Time is money; it's the simple truth. We spend our time working and are paid for it. It takes time for a writer to write a book that they eventually collect royalties on. A teenager spends a few hours of her time watching kids and is paid for it. You have to give up some time to make money.
When it comes to investing, the sooner you start, the more money you'll have. If you had $10,000 to invest over a period of 10 years, if you could, you should invest it all in the first year. You would have to most money after 10 years than if you spread it out. It's just simple rules of compounding.
The younger you are, the more money you can make. Just like investing more will likely make you more, waiting longer will make you more as well. If you want to know the true power of investing right now, just look at this example.
Let's say you're 23 years old and just started a good job. You want to retire at age 65 which is in 42 years/ If you invest $500 every year for 42 years with an average return of 9%, you'll have invested about $26,000. Guess how much this $26,000 will be worth? You'll have about $218,000.
What would happen if you started investing later in life, let's say at age 40? Even if you instead invested $2,000 a year for 25 years, you would have invested $50,000. That is more, so you should have a lot more in the long run, right? In this case, you would end up with $183,000.
When you combine time and compounding, you make a powerful combination. It's incredible how much more money you can make when you start early. Compounding will earn you more money because the money you earn each year will continue to earn money. If you want to retire comfortably, or even early, you must harness the power of time and compounding.
Invest whatever amount you think will work with your budget. There is no rule as to how much you should invest except that it should be as much as you can. What you put away towards retirement should be top priority in your financial budget. Start investing a certain amount now and add to it every year. Soon you may even realize that you might be able to retire early!
About the Author:
You really shouldstart investing right away ifyou want to retire or if you want to work for the rest of your life. Put aside some time now to learn more about different Types of Investments and start investing now!
posted by Debt Consolidation Loan at
9:51 AM
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