When should I start investing?

It is easier for people to save than invest because savings have virtually no risk and are usually short-term unlike investing which carries some risk and should be long-term. Also, with savings, you just put money away but investing means putting money in something and that something requires thought. You want to know that whatever is invested in is healthy and can grow, so investing is rightfully more difficult than saving which is why a lot of people delay it or think they need to hit certain financial milestones before they start investing. Our advice is to start immediately.

Why You Should Start Investing Now

The rewards of starting today far outweigh the benefits of starting tomorrow because of the powerful force that is compound interest. People who invest at a young age are, on average, more likely to grow their wealth, become financially independent and reach retirement sooner. The first step in your journey to investing should be a strong financial education. It is never wise to make investments in financial products you do not understand or cannot explain.

Say there are two individuals who started working at age 20 and retired at 60, person A starts investing $500 right from her first paycheck while person B decides to hold on for ten years, investing $500 monthly from age 30.

At retirement, person A will have $2.8 million at an annual compounding rate of 10% thanks to a 10-year headstart while person B will have $1million. There’s an almost $2million difference in their investment value despite the fact that there’s only a $60,000 difference in capital invested. That’s the power of starting immediately.

With investing, it’s not just the act but the habit you are building along the way. Plus, postponing it shortchanges you in the long run. The sooner you invest and maximise the power of compounding, the more your money grows and no amount is too small to start, that’s why at Rise, you can begin with $10.

We understand that investing can be daunting for newbies and experts alike because of how unpredictable the market is. With Rise, it doesn’t have to be. We don’t let you figure things out by yourself, instead, we invest and manage your money in a global portfolio of dollar investments.

Start investing today at rise.capital.

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