Time… When your in your twenties you think you have plenty of it before thinking about retirement, wealth building etc. The newly found freedom from adolescence can make one go wild. Your thirties come and you think yeah I should start thinking about saving, building a nest egg etc. The forties hit you and its like BAM!!!!!!!!!!! where did the last twenty plus years go. This is where I am at currently and the previous mentioned example is more or less a symbolism of my own situation. I did start in my late thirties taking a more serious approach to building wealth, but it has been my new start into forties where it has really hit home.
Time is very important when becoming invested in the market. The longer you are in it typically the better your returns will be as historically there are more good years than bad years. Compound interest also works it’s magic as time goes on. Albert Einstein once said “Compound interest is the eight wonder of the world. He who understands it, earns it .. he who doesn’t … pays it.”
So here we all have a chance to take this wonder of our world and make it work for us. Obviously this theory works best with dividend stocks. My plan is retroactively from January 2018 to post my investment account monthly showing the growth of dividends so watch for it. Without a doubt the sooner one gets started the better your results will be even if the amount is small. I wish I had educated myself sooner in this regard but never the less better late than never right?
I have other thoughts with relation to time as well but for the sake of keeping the topic more investing based with relation to time I will discuss them in another post. But to add as some starter for thought. What is your time worth to you? How do you use your free time? And will you earn compound interest or pay it?
Till next round cheers and goodnight from GWF