Why the Best Time to Start Investing is Right Now
Investing wisely is crucial to your long term success and happiness. However, it can seem overwhelming at first. After all, there are different investment vehicles, stock options, and funds from which to choose and no one can tell you the smartest option for your investment, but there is one thing that everyone can agree on: Start Now! If you begin investing today, you gain more benefits with time and learn to avoid common pitfalls. The end result is that you will have more at the end of your life to spend how you want. Here are a few reason why the best time to start investing is now.
The sooner you begin investing your capital, the more options you will create. This will help you feel unrushed and evaluate different firms, brokers, and opportunities at your leisure. Instead of rushing into an investment, you can plan it out in advance and be sure to do your due diligence. That way you can have the confidence and peace of mind that you’re getting the most out of your money.
One of the most powerful sources of financial leverage in the world is the concept of compound interest. This is a technique that you should be taking advantage of. It isn’t just linear growth, but exponential growth. Compound interest can increase the initial value of your investment by 100 fold or more over your lifetime, resulting in a difference of hundreds of thousands of dollars.
The economy right now is among the best that it has ever been. The stock market has reached new highs lately and investor confidence is glowing. In order to get in on the upswing while it’s still happening, you need to act fast. Otherwise, you risk missing out on what could be a major leap forward in your net worth.
Life has a number of surprises. These surprises can often be financially devastating if a disaster such as a medical emergency occurs. If this happens and you haven’t already set aside money for investing, it could set you back years. You may never get around to actually putting your money into funds and other vehicles that can pay you back. It could add years to the time you have to work to pay for your retirement.
Every year, your dollar is worth less and less. Wages have not gone up compared to inflation for decades. They have actually gone drastically down when compared to actual costs of living. With housing out of control and daily amenities becoming more expensive, every day that you wait to invest you lose leverage on your money. If you’re not fast enough, you could end up with a lot less zeros in your bank account that you think you have right now.
When it comes to investing, there is a lot of conflicting advice. But there is one piece that everyone agrees on. Starting to invest right now is the best course of action. The sooner you put your money into assets that can generate value for you, the more interest you can accrue and the more options you have. So don’t hesitate. Start investing and reaping the rewards today.
— Davenport Laroche, Headquartered in Hong Kong