Early Investment vs Late Investment

I have been encouraged people to do investment in my previous posts. Besides earning some part time income from my clients who invest with me, it is also good for yourself. I always encourage people to do investment at a younger age or early investment. Why? The reason is simple. I’ll use table to illustrate it.

I will use 2 persons as comparison. For example, Person A do an early investment and Person B do a late investment. Both person investment for 30 years. The annual return for the investment is 4%.

Person A do an early investment by investing RM1000 annually for 10 years. After 10 years, he decides to stop investing due to other commitment.

Person B does the same things as what Person A does. The difference is that Person B start investing 10 years later than Person A.

At the end, Person A invests RM 10,000 and he gets RM 27,359.13 while Person B invests RM20,000 and he gets RM 30, 969.20. You can see although their investment period is the same, the amount they invest and the total they return at the end are different. Person B receive around RM 4000 more than Person A but he invests RM10,000 more than Person A. What the conclusion? I believe you know it. No doubt I only assume that both persons keep earning from their investment which is impossible in reality. However, the main message that I wish to convey is we should start investment as earlier as possible. Instead of me nagging here discussing the figures in the table, maybe it will be better if you can look at both the tables and give some thought at it.

Investment is the only way you can make money as your slave instead of you becoming the slave of money.