Investing Fundamentals
What is a managed investment?
4 Asset classes
Choosing the right investment
Risk & return
Tips for investing
Choose a financial adviser
Learn the secret to wealth
Define investment goals
Budget to invest
Get Started
Compound interest
The right time to invest
Dollar cost averaging
Common questions
Need financial advice?

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Advantages of starting now

There is always a good reason for not investing, but there is actually an even better reason to start investing right away. In fact, starting sooner rather than later is one of the best investment decisions you can make.

If you asked your friends at a dinner party whether they are interested in becoming an investor, most people will say yes. If you then asked them why they haven't done so, a variety of reasons would probably come out.

Some people may not have the money to invest at the moment. If this is you, take a look at How to budget to invest to investigate your finances a little more closely. You may be surprised to find that you have more money available than you thought.

Other people simply don't feel that they know enough about investing, so they don't have the confidence to make a start. After doing a little research, or speaking with a financial adviser, most people can overcome this hurdle. So once people have the money and the knowledge to become an investor, why don't they go ahead and do it?

For many people, it just never seems to be the right time to invest.

  • If they are very young (in their twenties), they may say "there's plenty of time to invest when I'm older".
  • Once they reach their thirties and forties: "I'd really like to invest, but with these family obligations...".
  • And once they reach their fifties: "I know I need to invest, but it's probably too late to start now".

So what is the reason that you should start investing now?

Compound interest - the eighth wonder of the world.

Yes, it's compound interest. Albert Einstein is said to have called it the most powerful force in the universe, and John D. Rockefeller named it the eighth wonder of the world.

You may ask why they said these things. Most people studied compound interest in high school, so know how it works. But it's not until you start calculating some of the effects of compound interest that you realise how powerful it is.

For more information, visit our section on the power of compound interest.

You can see from the example what a big difference it makes if you wait even three years to start your investment. That's why starting now is so important.

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