The Time Value of Money is staggering. So why Invest Now Rather Than Later? SEE THE DIFFERENCE time makes in this chart.
See how 19 year old Susan invested early. $2000 for 8 years, invested nothing else from that point and in 45 yrs has $1,000,000.
HINT: START INVESTING EARLY!
Compared to Kym, the time value of money in the market, Susan contributed one-fifth the dollars but has 25% more to show.
How The Time Value of Money invites you to Invest Now Rather Than Later
See the difference
Susan
Investing at age 19 (10% Annual Return)
AGE | INVESTMENT | TOTAL VALUE |
19 | $2,000 | 2,200 |
20 | 2,000 | 4,620 |
21 | 2,000 | 7,282 |
22 | 2,000 | 10,210 |
23 | 2,000 | 13,431 |
24 | 2,000 | 16,974 |
25 | 2,000 | 20,871 |
26 | 2,000 | 25,158 |
27 | 0 | 27,674 |
28 | 0 | 30,442 |
29 | 0 | 33,486 |
30 | 0 | 36,834 |
31 | 0 | 40,518 |
32 | 0 | 44,570 |
33 | 0 | 48,027 |
34 | 0 | 53,929 |
35 | 0 | 59,322 |
36 | 0 | 65,256 |
37 | 0 | 71,780 |
38 | 0 | 78,958 |
39 | 0 | 86,854 |
40 | 0 | 95,540 |
41 | 0 | 105,094 |
42 | 0 | 115,603 |
43 | 0 | 127,163 |
44 | 0 | 130,880 |
45 | 0 | 153,868 |
46 | 0 | 169,255 |
47 | 0 | 188,180 |
48 | 0 | 204,798 |
49 | 0 | 226,278 |
50 | 0 | 247,806 |
51 | 0 | 272,586 |
52 | 0 | 299,845 |
53 | 0 | 329,830 |
54 | 0 | 362,813 |
55 | 0 | 399,094 |
56 | 0 | 439,003 |
57 | 0 | 482,904 |
58 | 0 | 531,194 |
59 | 0 | 584,314 |
60 | 0 | 642,745 |
61 | 0 | 707,020 |
62 | 0 | 777,722 |
63 | 0 | 855,494 |
64 | 0 | 941,043 |
65 | 0 | 1,035,148 |
Earnings Beyond Investment
$1,019,148
Kim
Investing at age 27(10% Annual Return)
AGE | INVESTMENT | TOTAL VALUE |
19 | 0 | 0 |
20 | 0 | 0 |
21 | 0 | 0 |
22 | 0 | 0 |
23 | 0 | 0 |
24 | 0 | 0 |
25 | 0 | 0 |
26 | 0 | 0 |
27 | $2,000 | 2,200 |
28 | 2,000 | 4,620 |
29 | 2,000 | 7,282 |
30 | 2,000 | 10,210 |
31 | 2,000 | 13,431 |
32 | 2,000 | 16,974 |
33 | 2,000 | 20,871 |
34 | 2,000 | 25,158 |
35 | 2,000 | 29,874 |
36 | 2,000 | 35,072 |
37 | 2,000 | 40,768 |
38 | 2,000 | 47,045 |
39 | 2,000 | 53,949 |
40 | 2,000 | 61,544 |
41 | 2,000 | 69,899 |
42 | 2,000 | 79,089 |
43 | 2,000 | 89,198 |
44 | 2,000 | 100,318 |
45 | 2,000 | 112,550 |
46 | 2,000 | 126,005 |
47 | 2,000 | 140,805 |
48 | 2,000 | 157,086 |
49 | 2,000 | 174,094 |
50 | 2,000 | 194,694 |
51 | 2,000 | 216,363 |
52 | 2,000 | 240,199 |
53 | 2,000 | 266,419 |
54 | 2,000 | 295,261 |
55 | 2,000 | 326,988 |
56 | 2,000 | 361,886 |
57 | 2,000 | 400,275 |
58 | 2,000 | 442,503 |
59 | 2,000 | 488,953 |
60 | 2,000 | 540,048 |
61 | 2,000 | 596,253 |
62 | 2,000 | 658,078 |
63 | 2,000 | 726,086 |
64 | 2,000 | 800,895 |
65 | 2,000 | 883, 185 |
Earnings Beyond Investment
$805,185
SUSAN EARNS | $1,019,148 |
KIM EARNS | $805,185 |
SUSAN EARNS MORE | $213,963 |
The time value of money shows Susan invested one-fifth the dollars but has 25% MORE to show for it 🥳
Timing the market is futile. Spending time in the share market is the key to take advantage of the time value of money. Interestingly, the best and worst trading days often happen close together and occur irrespective of the overall market performance for any year. Time in the market is your valuable and ever increasing asset.
The chart below shows the time value of money in the market. Time is your best friend!
Watching share market movements often makes many investors very nervous but history shows us that even with all the ups and downs, the time value of money in the market continues to rise. Trading economics is a great site to familiarize yourself with real time data.
Investing in the share market is typically a prudent choice for investors seeking long-term growth. Downturns aren’t rare events and all investors in all markets, will endure many of them during their lifetime. There have actually been 9 Bear markets since 1980. Despite this, the market has also continued to trend higher over the long term.
When it comes to the time value of money it is important to maintain a long-term perspective. Strong recoveries that have historically followed market downturns.
**OUR BEST TIP in the Time Value of Money –>> START INVESTING EARLY!
Learn more about the share market here because it is important if you want your money to work FOR YOU!
** If you are in your mid 20’s, start now. It will take a little longer, OR add more than $2000 per year. You’ll be glad you did!
* Not in that age category and want help in this space, contact us we are here for you.
Need help?
If a long-term investment wealth strategy to build and protect your wealth is important to you, call us on 08 7111 0022 or email to book a time with us.
Make the rest of your life the best of your life.
<= SHARE THIS STORY
Disclaimer: This article is information only. It is not intended to imply any recommendation about any financial product(s) or to constitute financial or tax advice. The information in the article is reliable at the time of distribution, but may not be complete or accurate in the future.