In this article, I will be telling you the truth. The Cost of waiting for the "perfect time" before investing is vague and an hoax. This is because there is no perfect time. Not even for investment.
I could remember back then when I was still younger, I always tell myself that I want to be a big Businessman with a lot of investment. As at then, I was looking at achieving all these in the next ten years.
Trust me, it is over ten years now and I am no where close to the Vision I envisioned for myself. I believe many people are in this category.
Often times, we are fond of making the following statements such as;
1. I'll start investing when I have certain amount.
2. I'll start investing when the economy is good.
3. I'll start investing when I am at a particular age e.t.c.
Truthfully, all these statements are just mere statements when we are always waiting for the perfect time before we can start investing. The truth is that there is no perfect time. It is out of nothing you create something.
The Perfect Time is a Myth That will never Arrive
Let's do an experiment together. I want you to go around and ask investors or businessmen how they started investing.
Ask them if it was easy for them? Or ask them if they all got it all figured out before investing. Trust me, most of their answers will be No.
There is always a cue somewhere for you to start investing. There is an open window you need to grab very fast.
However, in the midst of all these opportunities lurking around, there is always something giving you the impression to wait.
Don't yield to that impression. Just look around and make your research and start your investment immediately.
It is important for you to know that these investors or businessmen that are making waves today didn't wait for perfect time before they start investing. In fact, most of them invested with their tails in between their legs,
They learned to sail even when the coast is not clear.
They knew the market don't favour lukewarmness, the market favour action takers.
Yes, there are ups and down but here they are today simply because they stopped waiting for the perfect time to start investing.
Hence, when next you want to invest. Do it scared and calculatively. However, you must note that investing blindly is not what we are teaching you here. All we are saying is make your research and if you find the investment worthy, jump on it.
The Real Cost Is Time, Not Money
Most times, we often feel all we need before we can invest is money. That is not totally true because sometimes, all we need is Time and not money.
What people do with their time is what separates the successful ones from the failure. Let me tell you a quick story.
There are three friends named Tope, Tayo and Ominira. Tope started investing early at the age of 25 years. He invest $50 monthly and he stopped investing at age 35. Before you know it, he has invested over $6,000. He decided to leave it so it can be growing til age 65.
On the other hand, Tayo started investing at age 35 when he saw how serious his friend Tayo was serious with investment. He decided to follow suit. He decided to start investing $100 till age 65 on a monthly basis. By the time he was 65 years, he has invested over $36,000.
Lastly, Ominira was started investing $100 at age 45 years and she invested that amount monthly til the age of 65. She was able to invest a reasonable amount of money.
Here comes the twist, who do you think will get the highest return for their investment? Definitely, it is Tope who started investing early because his money would have gotten Compound interest.
And when we talk about compound interest, it simply means you get interest on your interest. Though, Tope invested the lowest but time helped him to gain compound interest which others were not getting like him. What helped Tope to succeed in his investment journey is Time.
When you take away time from the equation, then the engine won't be functioning like it should. Each time you delay your investment, you are also delaying what that investment could multiply for you which often comes as interest on your interest. Isn't that amazing?
2 Major Reasons Why People are Not Investing Yet
1. Fear of Losing: Most times, the major reason why people delay when they want to invest is because they are scared of losing their resources.
There is this saying that "Businessman lives by faith". Yes, this is because they know that in this life, nothing is certain.
You hear them saying statement like "The only thing certain in this life is death" and whenever they say this, we feel they are drunk or something. No, they are not drunk, they are just saying the reality.
2. Big Investment or Nothing: Some people don't invest because they want to invest a big amount of money or put in a large amount of resources when it comes to investment.
This is where they are getting it wrong. Waiting to invest a huge amount of resources might never come. How about you invest with those small and consistent amounts which will compound over time even when you are not looking.
What You Actually Lose When You Wait
1. Inflation: The truth of the matter is that Inflation will keep showing up. It will keep getting worse. Every seconds you fail to invest, it is bringing you closer to poverty. Apart from this, out of your capital, Inflation is waiting at the corner to eat it up.
2. Habit: If you are the type that loves to save, when bigger money comes or bigger salary emerge, it is likely you lose your habit of savings. Automatically, when you don't save, it brings you closer to poverty because the capital you ought to save might probably go with other things.
How to start Investing
1. Start with what you have: No matter how little you earn, you can still save up and invest those little money. You don't have to wait to have it big before you start investing. There is always an investment plan for every category of workers.
2. Save Before You Start Spending: Whenever you receive your salary, the first thing is to transfer a reasonable amount of money to another account for saving.
Ensure you lock the money so you won't be tempted to touch it when life pressures you to or perhaps, save it in a bank account that you don't have the Atm and also ensure the bank is very far from where you stay.
This will prevent you from touching the money unnecessarily except there is an emergency.
3. Focus on One Investment Platform Especially When You Are Just Starting Out: I could remember back then when I was younger. I always thought investing in various platforms will help me to make more money.
I did that and I regretted it because I was very confused simply because I was new to the world of investment and I dont have it figured out.
Hence, when you just start to invest especially as a beginner. Please ensure you invest on one investment platform. Make your research about the platform before you start investing to be sure if it is really worth it
Once you found it worthy, then you can go ahead to invest on it.
4. No matter what, don't stop even when you are afraid: Don't worry, you are not doing a wrong thing. You are doing the right thing. Just keep pushing and keep investing wisely.
Conclusion
A wise man once said the best time to invest is ten years ago. However, if you haven't been investing, there is another window of opportunity for you to do that which is today.
Start investing today. Don't think about the little salary or earnings you make. Just save up and invest no matter how little.
It will compound over time and your future self will thank you for yielding. Remember, Invest now. Tomorrow might be too late and ensure you do it strategically and calculatively.
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