I’m sure you must have heard the saying “time is money”. While this expression may be applicable in many areas of life, it’s especially relevant when it comes to investing and creating wealth — because the longer you put off investing, the less money you are likely to have when you really need it.
Many people think it won’t make much difference if they delay investing for one or two years. Another belief that they have is that investing small sums of money regularly will not help them meet their financial goals. But time flies, and before you know it, “one or two years” turns into a decade — and a decade’s postponement in investing small amounts makes an enormous difference.
How big is the difference?
If you start investing Rs. 5,000 per month into a portfolio that earns 12% returns annually, in 25 years it would grow to Rs. 94 Lacs. Additionally, if you increase your investments by 10% every year, as your earnings grow, it would increase your money to Rs. 2.1 Crores.
Delaying your investments by 5 years will reduce your corpus Rs. 1.1 Crores.
Here is a pictorial representation of how much your are losing every year by delaying investments: