A conversation with a friend recently got me to thinking about our approach to time in each phase of our lives. I think now more than ever, we feel a lack of time, and as a result rush through life trying to squeeze more and more into a shrinking pool of time.
For our financial matters, we need to remember that time is our friend. Starting an investment plan early is one of the best choices we can make, or best lessons to impart on the next generation.
Regardless of whether the goal is retirement, education savings, or debt repayment, starting earlier rather than later will help determine the level of success.
When we are younger, it is easy to get intimidated by the concepts of financial matters: investing, interest, growth, mortgages, and debt. As a result, we dismiss much of it by telling ourselves we have plenty of time to deal with those matters.
A wise person once said that the best time to start saving (I would also add investing and paying down debt) was 20 years ago; but the second best time is today. A brief, but powerful example of the impact of time, can be found in this article, Invest Early
“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
― Albert Einstein