Investing 101: When Is The Best Time To Start Investing?

When Is The Best Time To Start Investing?

Yesterday.

Yes, you are right, the best time to start investing is yesterday. Just like you always have another tomorrow, there is always a yesterday. The sooner you start investing, the better it is. You will realize how true it is when you come to understand the power of compounding interests.

Let's start with some simple calculation. Ben is 20 years old. Let's say Ben started his investment today with $10,000, and he manged to get a 10% return every year out of his investment. How much money would you think he would have 30 years later? Is your answer $ 40,000?

WRONG!

His portfolio would worth $ 174,494! How could this happened? This is the power of compounding interest! for this case, the calculation should be (1.1^30)x $10,000  = 17.4494 x $ 10,000 = $ 174,494.

Now, this is not all yet. What if Ben persist for another 15 years?
(1.1^45)x $10,000  = 72.8905 x $ 10,000 = $ 728,905. Surprise? An investment with mere 10 grands invested carefully and persistently for 45 years could turn into 729 grands. IF Ben started the investment with $ 50,000, he could have $3.65 million worth of asset when he turn 65. With that amount of money, he would be able to retire comfortably.

So, time is the most best friend for any investment. The earlier you start, the better your return will be.

I'm sure many people will be counting back the time they have lost not investing in the past. No point looking back on yesterday, it will never come back. So, the second best time to start investing is TODAY.

Start up your investment right TODAY, it is never too late!

"But I know nothing about investment!"
Come on, it's OK that you do not know. We are all born knowing nothing. If you do not know, just learn. Do not let your fear beat you down. B&B investing will be sharing investment tips from time to time. Just stay tune, and you will be a savvy investor one day.

"I'm afraid of losing money!"
You are already losing money to inflation every year without you knowing it! If you never invest, you will always lose money. We will be sharing about simple concept of inflation in the next few articles. Take the risk, and measures to manage your risk to be a successful investor. We don't abstain from driving just because so many accidents everyday, we take safety measures. B&B investing will also share some risk management tips in the future.

"I do not have money for investment!"
Well, save and invest should come first for all your income. If you never take the first step to save and invest, you will always have no money. You have no money for your first house, you have no money to feed your family, you have no money for your retirement, have no money to see the doctor when you fall sick. It's all about priority setting and fund allocation.

"I don't know what to buy!"
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