A wise man once told me that the best way to become a better Golfer is to go back in time and start playing when you were 12 years old, so thus investing is like golf.
Surprisingly, investing is similar to golf. The sooner you start, the better you will get and the less work you need to do to improve your investments. Time is always the most important variable for saving and investing.
How is Investing Like Golf?
Example: A Young Man
- If someone puts $2,000 away yearly in an investment that grows by 6% annually on average, from age 22 until he is 55.
Example B: An Old Geezer
- A more senior person decides to start saving later in life and puts away $6,000 a year from age 40 until age 55, with the same growth rate.
Who has the most money at the end of all of this?
Would you believe the young man might have $55,000 more money by age 55?
Also, if the young man develops problems with their investing, they have more time to fix the problem. Starting later, you have less of a chance of recovering from a horrendous problem with your investing technique.
_Maybe the old geezer (at 40) had already purchased a house and a car and/or married and raised some kids. I sure he at least lived with his (or her) money during those past 18 active years.
True, good point, there are many good arguments, my point is, let TIME build your wealth too!
–C8j