Concept of the Month: Slow and Steady Wins the Race

The Early Investor Catches the Worm

You may have heard the saying that “time equals money” or “money equals time.”  But, do you know what that means?  In the world of investing, the earlier you start investing, the more money you’re likely to have at the end.  In short, the longer you invest, the more money you’re likely to earn.

Take a look at this chart.  A 16-year-old invested $1,000 a year for 10 years, a total of $10,000.  Then, she did not invest anything for the next 25 years.  By the time she was 50, she ended up with $131,050!

On the other hand, a 25-year-old invested $1,000 a year for 25 years, a total of $25,000.  By the time she was 50, she ended up with only $84,701.

This is just one example, and actual results will vary widely.  However, the lesson remains true: by investing at a young age, you are more likely to make more money than if you wait until you’re older.