Invest Now, Don't Wait Until Tomorrow
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.
Investing is even more important in time. If you invest, your money will compound over time. This means it will grow faster and faster as time goes by. If you invest now, your money will be worth much more by the time you retire than if you waited another 5 years.
If you are young, such as in your 20s, you have a huge advantage. If you start investing, even putting the same amount aside overall, now and your friends start investing in their 40s, you'll have a lot more money.
If you start investing $1,000 a year from the time you are 25 until 65, you will have invested a total of $40,000. With an annual 9% return, guess how much money you'll end up with? You'll have about $365,000. That is a huge difference from $40,000 to $365,000. Just think about how much you could have if you invested even more each year.
Now let's say you decide you can't invest that much right now because you are just having too much fun spending money. Instead, you wait until you are 35 to start. You will invest the same amount of money overall, $20,000, but because you waited 10 years, you invest more per year equal to about $667 a year. You can't possibly earn that much more with an extra 10 years, right?
Take these scenarios you've read and use them to help you decide when you should start investing. Hopefully you've realized there is no better time than the present. When you put together time and compounding, you can earn a lot of dough. Compounding is basically exponential growth with your money. The money you earned last year will continue to earn money this year and so on and so forth.
There is no set amount of money that you must start investing now. You could start out very small and then as you begin to earn more, start contributing more. Start by taking 2% of your income and investing it for retirement, then add a percentage point more each year to your contribution. When you hit 20%, you might find you are in a good place 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.
Investing is even more important in time. If you invest, your money will compound over time. This means it will grow faster and faster as time goes by. If you invest now, your money will be worth much more by the time you retire than if you waited another 5 years.
If you are young, such as in your 20s, you have a huge advantage. If you start investing, even putting the same amount aside overall, now and your friends start investing in their 40s, you'll have a lot more money.
If you start investing $1,000 a year from the time you are 25 until 65, you will have invested a total of $40,000. With an annual 9% return, guess how much money you'll end up with? You'll have about $365,000. That is a huge difference from $40,000 to $365,000. Just think about how much you could have if you invested even more each year.
Now let's say you decide you can't invest that much right now because you are just having too much fun spending money. Instead, you wait until you are 35 to start. You will invest the same amount of money overall, $20,000, but because you waited 10 years, you invest more per year equal to about $667 a year. You can't possibly earn that much more with an extra 10 years, right?
Take these scenarios you've read and use them to help you decide when you should start investing. Hopefully you've realized there is no better time than the present. When you put together time and compounding, you can earn a lot of dough. Compounding is basically exponential growth with your money. The money you earned last year will continue to earn money this year and so on and so forth.
There is no set amount of money that you must start investing now. You could start out very small and then as you begin to earn more, start contributing more. Start by taking 2% of your income and investing it for retirement, then add a percentage point more each year to your contribution. When you hit 20%, you might find you are in a good place to retire early.
About the Author:
You really shouldstart investing now if you want to retire comfortably, early, or even at all. Put aside some time now to educate yourself about all Types of Investments and start investing now!
posted by Debt Consolidation Loan at
4:04 AM
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