Awesome benefits of early investing , because its simple

Benefits of early investing

Early investment comes with big rewards as it leads to more compounding i.e. More Money.
In money market money grows exponentially with time, the more time you give to the money , the more reward you get with time. Early investing gives you the power of time to tackle with the ups and down of the market. If you invest in your early age it will give to financial freedom before your retirement.

If you start investing in your 20’s

Suppose you start investing in your 20’s and continuously invest till age 40 (20 years) with interest rate 15% with a very little investment of 10000 per month , at the age 40 you have 1,32,92,055.
You Invested – 24,00,000
Total Return -1,08,92,055

If you continue for 5 more year i.e. at age 45 it becomes 2,76,09,894

Formula of Compound Interest

A = P(1 + \frac{r}{n})^{nt}
Here,
P is Principle Amount which is fixed (amount which we are investing ).
r is Rate which we assume to be fixed (Average of ups and down).
n is the number of time interest applied .
t is the number of time period.

So to increase exponentially we have to increase the value of t .




Save more

If you start at early age it becomes habit to save which leads you to achieve your goals and reduce unnecessary expenses.

Secure Future

Everyone in life faces some ups and downs and there will be time in life when you need urgent money to meet unavoidable conditions. At such time the money which you invested in early age proves very handy .

Financial Freedom

If you start investing at early age and with discipline continue investing for long period of time , there is time come when your money is making more then what you earns.

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