Published: 27th Aug 2024
By: Value Research
Imagine you had started preparing for an exam early. Wouldn’t you ace it? Similarly, starting our investing journey early can lead us to riches. Here’s why.
Suppose you start with Rs 2,000/month at age 25. If your investment grew by 12 per cent annually, your Rs 6 lakh would grow to nearly Rs 38 lakh by the time you turn 50.
If you keep investing the same amount for another 10 years, your investment of Rs 8.4 lakh will skyrocket to Rs 1.3 crore.
If you want to start an SIP but feel you don’t have enough to invest, then you can start for as little as Rs 500/month. And over time you can increase the size of your contributions.
By starting your investing journey early, you get more time to educate yourself, experiment, and explore strategies. If you lose money, you can still recover and refine your strategy.
If you start building your wealth early, it will grow well before you become old. But start in your 30s or 40s, and your money gets less time to grow; you get even less time to enjoy it.
At some point in your life, when responsibilities pile up, you’ll need to have money at hand to see the tough phases through. If you start early when responsibilities are less, it secures you during such periods.