Is now a bad time to start investing? The stock market is down and experts say we’re heading into a recession. Find out why right now is the best time to start investing. Here’s an example with twins Zane and Jane.
Zane waits until the time is “right” to invest.
He sees devastating news about the economy, recession, and stock values plunging and decides to wait to invest until things calm down.
This is a HUGE mistake.
… but Zane’s twenty and thinks, “I’ll never be 20-something again. I’m gonna live it up and travel!”
His income is low and retirement is so far way. He decides to start investing when he makes more money.
Throughout Zane’s twenties and thirties expenses constantly pop-up. His car needs a repair or there’s a massive medical bill. He rarely travels and when he does, he racks up a ton of credit card debt.
Jane starts investing ASAP!
On the other hand, Jane wants a secure financial future and to enjoy traveling now. She learns investing basics like compound interest and how the stock market works. The hype in the news doesn’t affect her long-term investing strategy. The long-term return is 10%! Plus, buying stocks when the market is down, is like buying something on sale!
Jane automatically invests $300 a month (before she even has a chance to spend it!).
Throughout Jane’s twenties and thirties, she makes a few sacrifices like having a roommate, driving a used car, and meal planning versus eating out every day. These little things add up and every couple of years she saves enough to go on a big international trip (paid in full before she hits the plane).
By age 35, Jane reaches “Coast FIRE.”
FIRE is short for Financial Independence, Retire Early.
Jane doesn’t need to invest a dime more and retire a millionaire.
From age 20 to 35 Jane invested $54,000 total ($300/month for fifteen years). Assuming her investment earns 8% at age 65 her retirement account is $1,053,777.
Jane’s money works for her. Her investment earns over a million dollars!
Zane finally starts investing!
At age 35, he invests the same amount monthly ($300) until age 65.
Zane invests twice as much in total ($108,000 or $300/month for thirty years). Assuming 8% return, his retirement account is valued less than half as much as Janes: $437,762.
If you’re thinking about investing, start now! Time is money. Karen Lamb said, “A year from now you may wish you had started today.”
Right now is the best time to start investing!
❤️ Carly
P.S. Want to start investing (confidently!)? Learn how in Best Money Class Ever. TONIGHT is the early enrollment deadline. Use code: enrollearly to get 10% off. There are only five spots! Get the details and enroll here.
