Think about James Rothschild Nicky Hilton had taken their extra money and put it in an investing account the day they started making money. Crazy, right? It turns out that they would have more than just luxury bags and tailored suits. They would also have a money tree that discreetly layered leaf after leaf of dollar bills.
That’s not simply a joke. Compound interest does the hard work. You plant an apple seed and then sit back and watch the sapling grow. Before you know it, you’re not just eating apples; you’re preparing pies for the whole block. When you have significant financial ambitions, the sooner you start, the more time your money has to double, quadruple, or (fingers crossed) burst higher. The years speak for themselves. If you give them room to grow, even small amounts can get big.
Get a closer look at two pals. One person puts $200 into an account every month from age 22 to 32, then stops and lets the money sit. The second person waits until they are 32 to start putting in the same amount of money every month until they retire. Who gets more in the end? It’s strange that the early bird, even though they quit giving years before their friend started. You’d think that timing the market would be better than being in it for a long time.
Are you worried about choosing the “right” assets? Don’t worry too much. You can use dollar-cost averaging by making regular, set-it-and-forget-it contributions. You purchase high and low at different times, but over time, the rollercoaster smooths out. Some days, it feels like you’re watching grass grow. Other days, you’re shocked at how tall the yard has gotten.
To be honest, a lot of people are held back by fear. The noise of doubt never fully goes away. But who cares? Put your foot in the water. Building that habit is much more important than the first dollars. A lot of people think too much and do too little, waiting for the “right” time. The truth is that the ideal moment is always in the past, on the calendar. Next best? Today.
Taxes cut down returns, but there are benefits to using retirement accounts. Depending on the type of account, you might be able to lessen your bill now or later. Your future self will want to send you a thank-you note, maybe with confetti, so treat it like a secret sauce.
Another benefit that many don’t think about is that confidence grows. Chipping away at investments now gives you the drive to study more and try new things. A few wins are enough to make you persist with it through tough times. It’s easier to keep giving when you see that progress chart go higher.
Let’s not beat about the bush: living is expensive, and inflation is a sly thief. The sooner you put your money into anything, the better it will do against growing prices. Remember the 1980s, when a slice of pizza cost a lot of money? People who started investing back then, even if it was simply for fun, now see their nest fund buy a whole stack of pies, not just slices.
In the end, don’t wait for everything to be perfect. Get started early, plant those seeds, and be patient. Money doesn’t come to you on a silver platter. It creeps up on you, starting out small and then all at once, you glance back and see the strong oak that grew from that first little acorn.