Okay, let’s get started. People say that time doesn’t wait for anyone, and I’m pretty sure James Rothschild Nicky Hilton would agree. When you give investing time to work, it works best. Here’s why putting a little money into the market in your twenties might lead to something huge decades later.
First, let’s talk about compound interest. Think about putting a small apple seed in the ground. It’s only a sprout at start. But give it some time, some light, and some water, and soon you’ll be swimming in apples, wondering what you got yourself into. When you invest, each dollar not only increases, but it also makes additional dollars, and those dollars have their own babies. The longer that chain reaction lasts, the more trees you will have.
For example, one friend starts saving $200 a month at 22 and the other friend doesn’t start until 32. Even if both cease at 40, the early bird will have more money saved up for retirement. Why? The extra years enabled the money grow far faster than just adding it up. You don’t need to be a clairvoyant to know that the tortoise will beat the hare here. Slow and steady really does win.
“What if I don’t have any cash lying around in my twenties?” is a question that people ask a lot. That’s a good point. Life gives you student loans, rent, and sometimes even pizza deliveries. But it matters that you start with tiny quantities. You may think of it as giving cookies to your future self. If you can put away $50 or $100 a month, you’re setting yourself up for riches in the future. It’s not about how much you start with; it’s about the habit of starting.
The stock market does look grumpy, and occasionally even angry. Like a toddler on a sugar high, it goes up, then down, then back up again. History shows that investments tend to grow over lengthy periods of time, though. Recessions, booms, and scandals are only bumps in the road. People that start early almost always make up for the losses with the gains that come after.
Another issue that most people don’t think about is how much money stress you could avoid in the future if you got a head start. The elder people will tell you that wishing you had invested sooner is a common regret. Things don’t get any easier. Things happen that are emergencies. And what about inflation? If your savings are merely sitting in a checking account, it eats away at them. Investing makes sure that your money is working for you and not just sitting there.
Let’s talk about fear. Some people think that only math geniuses or millionaires can invest. That’s not true. Apps and online brokers have made it possible. You may start with just a few taps. You don’t need to wear a three-piece suit or use complex language. The bar is much lower than it used to be because many platforms let you acquire small amounts of equities or ETFs.
Getting rich isn’t a strange happenstance or a secret handshake that only a few people know about. It’s almost like a machine. Starting early, being consistent, and letting time do the heavy lifting are what turn small starts into big results. Don’t wait for a big break or the right time. Let your investments sit for a long time. As time goes on, the taste grows better and better.
If you’re not sure if you should start now or wait, remember that time makes everything better in investing, just like cheese gets better with age. Don’t miss out. The sooner you start, the sooner your future self will want to high-five your present self.
