Part 5/7:
These steps invert the typical budgeting strategy. Instead of waiting to invest from leftover money, you prioritize investing first, forcing your lifestyle to adapt around it. This shift can lead to substantial changes in your financial future.
The Cost of Delay
The potential pitfalls of postponing investing are stark. By waiting even a few years before starting, you can significantly diminish your wealth due to the compounding nature of growth. For instance, beginning an investment plan at 25 as opposed to 35 could yield more than double the returns by retirement age purely due to the effects of compound interest.