Time is an exponent, a power force, that can radically multiply your financial results. An example is the best way to illustrate this. Let me introduce Joe and Bob. They are twins who are vastly different. Bob procrastinates while Joe takes action now. Have a look at how they applied the Wealth Formula to investing:
Money x Consistency x TIME x Return = WEALTH!
Who has more money at age of 65?
Believe it or not, its Joe with almost $1.9m compared to Bob with $1.6m. An almost $300k difference due to 8 lost years for Bob.
WOW!! So, seeing this, when do you want to start investing? ... NOW!!!
That's what time and compound interest does to money. Imagine if Joe had continued beyond the age of 27. It blows the mind!
If you hadn’t started at 19, don’t beat yourself up. Just get started today.
So, key take away, start investing ASAP. Times allows:
The magic of compounding to run its course as the longer money stays invested the more it compounds.
You to ride out market ebbs and flows. While the markets tend to be volatile in the short-term, the trend is up over the long-term.
For small seeds to be continuously and regularly planted to yield the great harvest. This strategy is called dollar cost averaging that allows you to harness the power of time and take advantage of market fluctuations.
The exercise of the virtue of patience. You will have to forego the lure of instant gratification to benefit from the discipline of investing through thick or thin.
The clock is ticking! Every moment you delay is a missed opportunity. Use the time you have wisely, and let it work in your favour. Start now, start small if you must, but start. Because when it comes to investing, the choice is clear: use it or lose it. Time waits for no one, and in the world of finance, it's the most valuable asset you have.
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