For many people, investing their assets for the future is something they’ll do “tomorrow” when the market looks a little better or when the economy seems to be a bit more stable. Financial procrastination is a real issue among people of all ages, and it can cost you a pretty penny in the end. Investing in your financial future right now is absolutely critical, and these are the reasons why.
Time is On Your Side Right Now
There is a popular saying that the best time to invest in the stock market was 20 years ago, but the second best time is today. Most people don’t think to start investing their money when they are in their teens working their first jobs. In fact, the idea generally doesn’t occur to folks until they’re in their late 20s and early 30s, and even then, they may put it off while thinking they still have plenty of time. The sooner you start investing in your financial future, the better. Failing to invest right now is the same as watching money go down the drain. Put those dollars to work!
Compound Interest Can Add Up
Albert Einstein once referred to compound interest as the eighth wonder of the world , and he really hit the nail on the head. To sum it up as simply as possible, compound interest is the money you can earn on the money that your money earned. Sound confusing? It really isn’t. Let’s say you invest $1000, and over the course of a year, that $1000 earns $10 in interest. Then, you reinvest that $10 and you earn another $2. Even if you never add funds to that $1000 ever again, if you invest it properly, it will continue to earn compound interest for years to come.
You Get All the Control
If you’re someone who spends your money as it comes in - or even if you’re someone who simply socks cash into a standard savings account with each paycheck - you’re not really taking control of the future. When you actually invest part of what you earn, you’re putting your money to work for you. You get to watch as your investment grows year after year after year, and you get the satisfaction that comes from knowing that you are in control of your future, whether you experience an emergency in a few years or you reap the benefits of all that work when you retire.
You’ll Wish You Had Started Earlier
When people who have managed to do well for themselves with their investments are asked what they would change about the way they went about building wealth, the most common answer is, “I would have started earlier and invested a little more.” You should view your investment portfolio just like you would view your electric bill or car insurance payment - an obligation that you need to take care of. The major difference? In 30 or 40 years’ time, that obligation will pay off in a serious way in the form of financial freedom.
If you’re waiting to start investing for any reason, now is the time to take that first step. Schedule a consultation with a wealth management and financial advisory firm to learn more about all the ways in which you can put your money to work today so that you can enjoy the life you want tomorrow.