Why Starting to Invest Early Matters More Than Investing More

In the world of investing, time is much more powerful than money. A small amount invested early can easily outperform a larger amount invested late.

The Tale of Two Investors

• Investor A: Starts at 22, invests $500/month for 10 years, then stops. Total invested: $60,000.
• Investor B: Starts at 32, invests $500/month for 30 years until retirement. Total invested: $180,000.

At a 7% return, Investor A (who invested 3x less) will likely have more money at age 62 because their money had an extra 10 years to compound at its largest size.

The Lesson

You cannot buy back time. Every year you wait to start investing reduces your final outcome significantly. The best time to start was 10 years ago; the second best time is today.

See how your money grows over time with our Investment Return Calculator.