How many times have you waited for the perfect moment to do something that you feel you are not ready to do in the present time? This is very common. We as people justify waiting to accomplish certain things in our lives for all kind of reasons. Well guess what...? You are never necessarily ready for anything lives hands you. We merely just fail forward and figure it out, if we are not yet equipped with the know-how to execute specific tasks at a high level.
Waiting can potentially cost you a lot of money, almost six figures to be exact. In my book “B.R.O.K.E: Six Keys to Building Wealth” (which you can also purchase by clicking the link at the top of the page), I detail a story about two brothers named Ty and Tim. Ty and Tim are brothers that began investing at two different stages in their lives. Tim is the younger and less established brother who began investing at the age of 23 when he was fresh out of college. Ty is the older of the two siblings. He makes six figures annually in his career as a medical supply salesman, but he did not begin investing until he was 33.
Tim started out with an initial investment of $2,500 which was his entire life savings at the time. Each month thereafter he added $200 or $2400 for the year. His investment of choice was an S&P 500 index fund.
On the other hand Ty started investing in the same fund, however he had twice as much seed capital totaling $5,000 while adding an additional $400 each month or $4800 per year, which was twice as much as his brother Tim.
At the time of retirement, Tim ended up with less than his younger brother, although he contributed twice the amount of money at the start of each month. Tim’s total = $754,448.39. Ty’s total = $851,947.92. This is a difference of $97,449.53. Almost one-hundred thousands dollars less; no small sum!
Why is it that Tim, who was able to invest twice the amount of money compared to his brother ended up almost six figures short of his younger brother? The answer is time. Tim allowed his money to grow and incubate as a result of compound interest. 10 years equated to $97,449.53 more than his older brother who earns and contributes more to his retirement plan.
Your future can not afford for you to wait to decide on the right time to invest your money. I’m sure you could do a lot with $97,449.53. Begin investing today.