Why I Wish I’d Started Investing Sooner

I’ll be honest: for years, the idea of investing made me nervous. It felt like something only “money people” did—folks with finance degrees or big inheritances. But the more I read, the more I realized that investing is really just a tool anyone can use to build a bit more security for their future. If you’re like I was—curious but hesitant—maybe this little exploration will help you see why starting now could make a real difference.

The Earlier, the Better: Compounding in Action

One thing I kept hearing about was “the magic of compounding.” At first, it sounded like one of those buzzwords financial gurus throw around, but it’s actually pretty simple—and powerful. Compounding is just the process of earning returns not only on your original investment, but also on the returns that investment has already generated.

Let’s put some numbers to it. Say you start investing $100 a month at age 25. If your investments earn an average annual return of 6% (which is roughly the historical average for a diversified stock portfolio), here’s what could happen:

• After 10 years, you’d have contributed $12,000, but your account might be worth about $16,470.
• After 20 years, your total contributions would be $24,000, but your account could have grown to $46,200.
• And after 40 years? You’d have put in $48,000, but your investment might be worth $199,150.

That’s not magic—it’s just math, and the math gets a lot more impressive the earlier you start. (Of course, these numbers are hypothetical and actual returns can vary, but you get the idea.)

You Don’t Need a Fortune to Begin

I used to think investing was only for people who could drop a few thousand dollars at a time. The truth? Many platforms let you start with as little as $10 or $20. The key is consistency, not size. Even small, regular contributions can add up over time, especially when you factor in compounding.

Why Not Just Save?

A question I asked myself: why bother with investing when I can just save? The answer, I learned, is inflation. Over time, the prices of things we buy—groceries, rent, coffee—tend to rise. If your money just sits in a regular savings account, it might not grow fast enough to keep up. Investing offers a way to potentially outpace inflation and preserve your purchasing power.

Learning as You Go

I’ve made my share of mistakes (like panic-selling during a market dip), but each one has taught me something valuable. The sooner you start, the more time you have to learn—about yourself, your goals, and how markets work. It’s a bit like learning to ride a bike: you’ll wobble at first, but with practice, you get steadier.

Flexibility and Peace of Mind

Starting early also gives you more time to recover from the inevitable bumps in the road. Markets can be unpredictable, and there will be ups and downs. But with a longer time horizon, you’re less likely to be derailed by short-term swings. That flexibility can make the journey a lot less stressful.

‍

One of the most motivating reasons I’ve come across for starting to invest early is the possibility of retiring sooner than the traditional age. When you consistently invest over many years, your money has more time to grow, and those returns can start to work harder for you than you do for them. Some people call this “financial independence”—the point where your investments generate enough income to cover your living expenses. It’s not just about quitting work, but about having the freedom to choose how you spend your time, whether that means traveling, pursuing hobbies, or spending more time with family. While early retirement isn’t guaranteed, starting to invest now could bring that dream a lot closer to reality.

A Quick Reality Check: The Risks

I’d be remiss if I didn’t mention this: investing always involves risks. There’s no guarantee you’ll make money, and you could even lose some of what you put in. That’s why it’s important to do your research, diversify your investments, and only invest money you can afford to leave untouched for a while. I try to remind myself that the goal isn’t to “get rich quick,” but to build wealth steadily over time.

Final Thoughts

If you’re on the fence about investing, I get it—I was, too. But looking back, I wish I’d started sooner, even with tiny amounts. The combination of compounding, the chance to outpace inflation, and the opportunity to learn by doing are all reasons I’m glad I finally took the plunge.

Maybe you’re not ready to jump in with both feet, and that’s okay. But even dipping a toe in—just a little—could set you up for a more comfortable future. And years from now, you might just look back and thank your younger self for getting started.

‍

‍

Investing involves risk. You can loose your investment.

‍