what happens when you wait to start investing?

What Happens When You Wait to Start Investing?

Investing is about time in the market, not waiting to time the market.

Time is the changing factor to your return on investment when you start investing early.

The later you wait to invest the less your return will be since you will lose out on compound interest.

Trying to time the market by always buying low and selling high is nearly impossible and isn’t a good investment strategy.

The longer your money is invested, the more time you’ve allowed for your money to grow.

At an older age, your risk appetite changes to a more conservative approach whereas at an early age time allows you take more risk.

Your financial obligations are greater at an older age, it’s best to start on early when you have less obligations and responsibilities.

Take a look at the drastic difference of someone who waited to invest vs one who invest early:

**Investor A** (Total Contribution £80,000)

Invests at 26 years old £2,000 assuming a 10% annual return Year End Value at £2,200. Return on investment with a continued annual investment of £2,000 till 65 years old equates to £893,704 .

**Investor B** (Total Contribution £14,000)

Invests at 19 years old £2,000 assuming a 10% annual return Year End Value at £2,200. Stops investing at 26 years old. Return on investment with no continued annual investment from 26 years old till 65 years old equates to £930,641.

Moral of the story is when your money has more time to grow, it grows you more money.