There are many reasons to start investing early. A few of them may be Financial Discipline, developing good financial habits, and most important Compounding Benefits.
Why early investment is important for any investors?
Starting to invest early gives the opportunity to achieve long-term goals. Know the power of compounding …
Scenario 1:
Person A starts investing Rs. 20,000 per month @ age 30yrs at 12% for the next 30 years i.e. till he is 60yrs. His Corpus at the end will be approximately Rs. 698,99,246.
Scenario 2:
Person B starts investing Rs.20,000 per month a little late (pun intended) @ age 35yrs at 12% for the next 23 years i.e till he is 60yrs. His Corpus at the end will be approximately Rs. 375,76,912.
Did you see what exactly happened here?
A delay by just 5 years costs Person B a whopping approx. Rs. 323,00000.
That’s the power of compounding.
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