How Costly Could Waiting to Invest Be?
According to a Gallup Poll, the average age investors start saving is 29 years old, and only 26% of people start investing before the age of 25. People typically hold off investing because they think they have all the time in the world. Yet, the result of waiting could be costly.
If you were to invest $3,600 per year at age 22 (assuming your money is growing by 8%, which is the average rate of growth.) until age 62, you would have $1 million dollars of wealth thanks to the stock market.
However, if you held off investing until age 32, you would have to invest $8,200 per year to reach the same amount of $1 million by age 62. That's almost a $5,000 difference!
Don’t believe just because you’re young that investing isn’t important. The truth is, the younger you are, the better. This is thanks to compound interest. Time makes compound interest extremely powerful, and you’ve got a lot of it.