When Should You Start Investing?

Time Is the Most Powerful Multiplier

The power of compound growth:

Imagine two people:

• Anna starts investing $200/month at age 25

• Ben waits until 35 to do the same

• Both stop at age 55

At a 7% annual return:

• Anna ends up with ~$228,000

• Ben ends up with only ~$112,000

That 10-year head start earned Anna double, with no extra effort.

This is why starting early matters more than starting big.

But Don’t Start Blind, Prepare First

You should begin investing only after covering a few key essentials:

Build an Emergency Fund

• Set aside 3–6 months of basic living expenses

• This protects you from needing to pull money out of investments during market downturns

Pay Off High-Interest Debt

• Credit card debt (>10–15%) grows faster than most investments

• Paying it down is a guaranteed return

Understand Your Investment Timeline

• Money needed in <3 years should stay in cash or savings

• Longer-term goals (retirement, property, education) are ideal for investing

Once you’ve checked these boxes, you’re ready to start , even with small amounts.

What’s Holding People Back?

Let’s address the common fears and misconceptions.

“I’ll wait until I earn more.”

• Starting small builds the habit.

• $25/month grows to $10,000+ over time, it's not the amount, it's the consistency.

“Markets are too risky.”

• Yes, markets rise and fall, but they trend upward over time.

• You can reduce risk by investing in diversified funds and not putting in money you’ll need soon.

“I don’t know enough yet.”

• You’ll learn more by doing than by reading.

• Start with broad ETFs (like S&P 500 index funds) while you continue learning.

Tools That Make It Easy

Use Auto-Invest:

• Set up automatic contributions through your broker or app

• Helps you stay disciplined and benefit from dollar-cost averaging

Start With ETFs or Robo-Advisors:

• Broad-based funds offer instant diversification

• Robo-advisors manage your risk level for you, based on your goals

Real-Life Benefits of Starting Early

Starting early does more than grow your money:

• You build confidence by learning gradually

• You develop better financial habits

• You reduce pressure on your future self

• You open the door to financial freedom earlier in life

Even if you can’t invest a lot, the act of starting — and sticking with it — puts you far ahead of most people.

Final Thought: Start Simple. Start Now.

“You don’t have to be great to start, but you have to start to be great.” – Zig Ziglar

There’s no perfect moment, only missed opportunity.
Start with what you have, stay consistent, and let time do the heavy lifting.

Because in investing, the best day to start was yesterday.
The second-best is today.