When it comes to investing, "When" is often more important than "How much." The biggest regret most older investors have is not that they didn't invest enough, but that they didn't start sooner.
The Cost of Delay
Many young professionals delay investing, thinking they need to earn more before they start. This is a costly mistake. Let's look at the math.
The Tale of Two Investors
Rahul (Starts at 25): Invests ₹5,000/month until age 35, then stops adding money but lets it grow. Total Investment: ₹6 Lakhs.
Rohan (Starts at 35): Invests ₹10,000/month until age 60 (for 25 years). Total Investment: ₹30 Lakhs.
Result at Age 60 (@12% Return):
Rahul's Corp: ₹2.8 Crores
Rohan's Corp: ₹1.9 Crores
Rahul invested 5x LESS but ended up with MORE money simply because he gave his money more time to compound.
Benefits of Starting Early
- More Risk Appetite: When you are young, you have fewer responsibilities and a longer time horizon, allowing you to take calculated risks in equity funds for higher returns.
- Habit Formation: Starting early instills financial discipline and the habit of saving before spending.
- Power of Compounding: As shown above, time does the heavy lifting for you.
It's Never Too Late, But Today is Best
If you haven't started yet, don't worry. The second best time to start is today. Every day you wait is an opportunity lost. Start small if you have to, but start now.