You’re just starting out. You might be paying off student loans, figuring out your career path, or saving for your first home. Retirement feels far away — so what’s the harm in waiting a few years to start investing?
Why This Matters
When it comes to investing, time is more powerful than money. The earlier you start, the more your money can grow — even if you invest less overall. The difference can be staggering.
Let’s look at what happens when two people take different approaches to investing, based on real calculations from a financial model.
Two People, Two Strategies
Meet Sheila and Orsan.
- Sheila starts investing at age 22 and stops at 30. She invests $100/month — a total of $10,800 over 9 years. Then she never adds another dime, but leaves the money invested until age 65.
- Orsan waits until age 31 to start. He invests the same $100/month, but does so consistently for 35 years, contributing a total of $42,000. He contributes 4X more and has 33% less.
Guess who ends up with more money at retirement?
| Person | Start Age | Stop Age | Years Contributing | Total Invested | Ending Balance at 65 |
|---|---|---|---|---|---|
| Sheila | 22 | 30 | 9 | $10,800 | $572,000+ |
| Orsan | 31 | 65 | 35 | $42,000 | $382,000+ |
Shiela started early. She invests less than a quarter of what Orsan did and ends up with nearly $190,000 more. Shiela let time and compounding do the work.
What people get wrong
- “I can’t afford to invest yet.” Start small. Even $50/month helps. The key is consistency and time.
- “I’ll catch up later.” You may earn more later, but you’ll also have more obligations. Plus, the cost of waiting grows each year.
- “I’m afraid of losing money.” Investing does involve risk — but over long periods, markets tend to grow. The bigger risk is missing out on decades of compounding.
Action Steps: What You Can Do Today
- Start now, even small. Open a Roth IRA or 401(k) and automate a modest monthly contribution.
- Choose a simple, diversified fund. A total market index or target-date fund is a great place to begin.
- Stay consistent. Don’t stop when the market dips. That’s when your money buys more.
Final Thought
Time is your greatest asset. Sheila’s story shows that even modest investments made early can outgrow larger contributions made later. So if you’re 25 and wondering if you can wait until you’re 35…
You can delay — but it’ll likely cost you six figures.
The best time to start investing was yesterday. The second-best time is today.
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