Time is Your Greatest Asset: Why Starting Early Matters

When it comes to building wealth, time is arguably your greatest asset. Let me show you why.

The Early Bird Advantage

Consider two investors with very different approaches:

Investor A (Early Starter): - Starts investing at age 25 - Invests $500/month for 10 years - Stops at age 35, never invests again - Total contributions: $60,000

Investor B (Late Starter): - Doesn't start until age 35 - Invests $500/month for 30 years until age 65 - Total contributions: $180,000

Assuming a 7% annual return, at age 65: - Investor A: ~$753,000 - Investor B: ~$712,000

Despite investing three times as much money, Investor B ends up with LESS because they started 10 years too late. Investor A's extra decades of compounding more than makes up for their lower contributions.

The Cost of Waiting

Every year you delay investing is a year of compound growth you can never get back. This is sometimes called "opportunity cost."

If you delay investing just 5 years: - Years of growth: 40 instead of 45 - Impact on final balance: Typically 15-20% less

Small Amounts Add Up

You don't need a large initial investment. Even $100/month invested consistently for 30 years can grow to substantial wealth.

• $100/month at 7% for 30 years = ~$104,000
• $100/month at 7% for 35 years = ~$141,000
• $100/month at 7% for 40 years = ~$192,000

The difference those extra 5-10 years make is dramatic.

Action Items

1. Open an investment account today if you haven't already 2. Set up automatic monthly contributions, even if small 3. Resist the urge to wait for the "perfect time" 4. Remember: the best time to plant a tree was 20 years ago, the second best time is today