Investing needs time

Rome wasn't built in one day... if this saying holds some truth, time is of utmost important. Given time one can change from not knowing to knowing. If you are already on an investment journey, give yourself a pat on the shoulders. If you have not done so, I cannot emphasize enough on the importance of getting started as early as possible. Set up a brokerage account and be on your way to your first investment. Don't let procrastination take you down because any delay can only make you further away from financially free.

Investing needs time and only time will grow your investment. It is common see commercial banks using the illustration of trees as part of their most common marketing campaign. As you can see, time is needed for a seed to develop into a full growth tree. You have to water the plant consistently to see it grow. Once the plant turns into a tree, it will bear fruits and provide enough shade for you while you rest underneath. The canopy extends wide into the sky providing ample protection from the sun. Its roots are firmly grounded as it spreads across the ground providing a sturdy support. For investing, it is pretty much similar, you can start with a small capital and add up as you slowly grow. It will take time and you have to be patient and before you can realized, your small investment with years of accumulation and compounding interest has matured into a full grown tree. One main problem with long term investing is that when we are investing into the future and the future seems bleak. It is a faraway plan, it is not something within your reach, it is not immediate, it is unclear. People tend not to know what they will be doing the very next day, let alone in 10 years, 20 years or more. It is difficult for anyone to imagine a world which they will be living in and as a result we often find it hard to imagine our finances for that time space. One of the many ways to create this image is to list down the things which you would like to have and do during when you aged.

If you like to retire in a foreign land, enjoy a margarita daily, practice your music and art, live in an apartment which overlook the sea, drive around town in your mini van and able to do a slow walk down the beach when the sun sets every evening, what do you need to do now in order to create this vision? For a start, you need to be able to afford an apartment in a foreign country. You need to be able to afford petrol and vehicle insurance. You need money to buy a glass of margarita... and it all adds up. The investment that you do today is going to fund you for your life later. Every $500 you invest a month is every $500 spent in years to come (assuming there is no inflation which is almost impossible).

Many people think of investment as a huge life commitment. They imagine it as a chunk of their regular income going to somebody's pocket, usually as commission and have little to no control over them once they have committed. In fact, these days, investment can be done via a mobile app and certainly not as scary as one may think. The fear is not with investing but with their commitment... a long commitment. Going back to my earlier point, growing a tree needs time and requires one to stay committed to watering the plant daily. If you belong to any of the following, you need to break out of this immediately:

1) I have no time for investment. Investing can be done actively or passively.

2) Life is short, I won't live long enough to spend my investment. What if you didn't die?

3) I am earning a relatively well income now and I don't need to invest. The more you need to invest as your time will run out as you aged and so will your income.

4) I know investment is good for me but I don't know how to start. I also didn't know how to read ABC when I was young but I learnt. I also didn't know how to cook maggie mee but I learnt. I also didn't know how to drive but I learnt. I also didn't know how to... you get the idea. Remember, investment in this era is not a want it is a NEED!

5) I am still young, I have other financial commitments. If you plan early, you retire early. You can do the things you love earlier.

6) When I have the time, I will learn about investing. Investing needs time and if you don't have time now, you never will.

7) I have no money to invest. Investing means growing your capital. Contrary to many saying, you need money to invest. The point here is not to invest and get rich, it is to grow your capital. Gaining $40 from a $1000 investment or growing $4000 from a $1000000 investment is still after all the same 4%.

8) I am happy saving my money in the bank. The worst thing that you can do is to save your money in the bank as it pays you very little interest and unable to beat inflation.

9) I am scare that I will lose money through investment. There are many types of different investment assets with different risk volatility: Bonds, Unit Trust, Equities, Cryptocurrency, CPF, ETF... go for a safest if you are scare but it is scarier not investing.

10)  Investment is only for the rich. Entirely not true... investing is for everyone who wants to take action. Luck is opportunity for those who are well prepared.

About The Contributor

Ben is not financially trained. He is not a certified financial planner and he does not sell any insurance or investment plans. He is not financially motivated by any entities to produce this blog. He just want his friends to know more about money management and not have anyone fall between the social cracks. Nope, he is not a millionaire though he aims to be financially free before 50 years old.