If you ask anyone who has retired and is living a comfortable life with utmost financial security how they obtained their current financial freedom, they will tell you that they started investing in the early years. Investing is the holy grail of attaining financial freedom and having an adequate amount at retirement or in the absence of a primary source of income. However, when it comes to investing, most people are confused as to what is the right time to invest. In their quest to time the market, they lose out on ideal investment opportunities and end up building inadequate wealth as they start investing very close to retirement.
 

If you want to build wealth over time and have adequate savings, it is important to know when to start investing. This blog will help you understand why you should start investing now when you are earning to help you build a retirement corpus or cover short-term big expenses.
 

If you are looking for a safe investment option, you can consider fixed deposit. They offer guaranteed returns and a fixed interest rate throughout your investment tenure.

• Investing now is beneficial as it provides more time for investments to grow by outpacing inflation and reducing the negative effects of short-term market fluctuations.

• The current investment market is reaching record highs, which can help you multiply your wealth substantially.

• Delaying investing can lead to missed opportunities for compounding returns, significantly reducing potential wealth accumulation over time.

• You can consider numerous investment instruments, such as stocks, bonds and mutual funds, for investing now.

Investing is one of the most important aspects of a successful financial plan, as it allows your invested money to grow at a quicker pace than a savings account. By investing in a host of investment instruments such as stocks, bonds, mutual funds, etc, you can earn higher-than-inflation-rate returns, which can help you factor in the loss of monetary value over time and save an adequate amount. When you start investing early, you can benefit from compounding returns as your investments get more time, and you can contribute more. This is especially important for long-term goals such as retirement, purchasing a home, or funding your children's education.

Investing provides the best returns when it is done as early as possible, ideally from the first month you start earning. Although you may not save much in the early months or years, investing whatever amount you have saved creates an investment discipline that allows you to invest regularly. Over time, the money you invest earns compounded returns and provides you with significant profits. Currently, the Indian stock market is reaching record highs, with Sensex and Nifty providing significant returns. Furthermore, here are some more reasons as to why you should consider investing now:

• Compounding returns: Compounding is when the earnings from an investment are reinvested to generate additional earnings. If you start investing now, you can earn significant returns over time, as compounded returns will increase the value of your investments. For example, if you invest Rs. 1,00,000 at an annual return of 10%, after 20 years, it would grow to Rs. 67,2,750.

• Lower chance of losses: Investing for the long term reduces the effects of short-term volatility on your investments, as you do not sell them in the short term. Investing now will help you lower the chances of short-term losses, providing better returns in the long term.

• Inflation protection: Over time, inflation lowers the purchasing power of your money. However, investments in specific instruments, such as stocks, real estate, or gold, tend to outperform inflation. By investing now, you can achieve returns above inflation and preserve your investment’s monetary value.

• Tax benefits: Every earning individual is liable to pay taxes but can lower the taxable income by investing in various tax-saving instruments. Many investments, such as the Public Provident Fund (PPF), Equity Linked Savings Schemes (ELSS), and retirement plans, offer yearly tax benefits, which you can use to save taxes and increase your savings.

• Financial independence: Investing now can help you achieve financial independence, which can help you cover big life expenses such as buying a home, funding your children’s education, or retiring comfortably. You can also generate passive income streams by investing now, which can help you get a regular pension.

You can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 8.60% p.a.

There is no better time to invest than now; it can help you build wealth, secure financial independence, and achieve your financial goals. The earlier you start, the more time your investments have to multiply through compounded returns and allow you to outpace inflation.