CA Explains How Not Investing On Time May Cost You

A Linkedin post Explains how waiting even a few years can make a huge difference to your future savings.

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New Delhi: Most people know they should start investing early, but many put it off, thinking they’ll do it when they earn more. But waiting even a few years can make a huge difference to your future savings. In a LinkedIn Post CA Rohit Gyanchandani explains how delay in investing can create financial burden on people.

Priya and Rahul are both 25 years old. They each want to save Rs 1 crore by the time they retire. Priya starts investing right away. She puts in about ₹5,322 every month through a Systematic Investment Plan (SIP) that gives her a 12 percent return each year. If she keeps this up for 25 years, she’ll reach her goal. Over all those years, Priya will have put in about Rs 15.96 lakh from her own pocket.

Rahul, on the other hand, decides to wait five years before he starts investing. He thinks he’ll have more money to invest later. But now he only has 20 years to reach the same Rs 1 crore goal. To make up for lost time, he needs to invest much more—Rs 10,108 every month. By the end, Rahul will have put in Rs 24.25 lakh of his own money—over Rs 8 lakh more than Priya.

Why does this happen? The answer is simple: compounding. When you invest early, your money has more time to grow. The returns you earn in the first few years start earning returns themselves. This “snowball effect” means your money grows faster and faster over time.

The lesson is clear: the longer you wait, the harder you have to work to reach the same goal. You’ll have to save more each month, and you’ll end up putting in much more of your own money.

So, if you’re thinking about investing, don’t wait. The best time to start was yesterday. The second-best time is today. Even small amounts can grow big if you give them enough time.