Investing Matters
The most important thing you need to know about investing is to start early. Why? Because
time is your money multiplier and the most critical factor when it comes to growing your money.
Generally, the following applies when you invest early and often.
- You can invest more money over time.
- Your investments have longer to grow.
- You may be able to achieve your financial goals earlier in life.
Time Is On Your Side
To give you an incentive to start investing early and consistently, look at the following
hypothetical examples which assume an 8% average rate of return and do not consider tax rates
and tax treatment of earnings.
| Investor 1
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Investor 2
|
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Began investing $100 monthly at age 25; continued to invest until age 67.
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Invested $100 each month
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Total invested $50,400
- 8% average rate of return
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At age 67, investor had $412,049
|
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Began investing $100 monthly at age 18; continued to invest until age 67.
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Invested $100 each month
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Total invested $58,800
- 8% average rate of return
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At age 67, investor had $731,236
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Topics covered in this section are:
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Basic Money Management
Basic Money Management