Investing ₹3,000 every month? A 5-year delay can cost you ₹88 lakh
1 min read.Updated: 29 Jul 2020, 01:53 PM ISTAvneet Kaur
We have assumed three investors who started investing ₹3,000 on a monthly basis at different ages. Every investor is investing towards his or her retirement till the age of 58
A few years delay in making your first investment can cause a crore worth of harm to your financial status. We all know the importance of starting early but we will always have our excuses to delay our plans to invest. We have worked some simple calculations here to show the opportunity loss if you delay investing a small sum of ₹3,000 every month by five years or so. Well, you will be stunned to know that if you start five years late, you would accumulate ₹88 lakh lesser by the time you reach your goal. Here are some more numbers to thrill you.
We have assumed three investors who started investing₹3,000 on a monthly basis at different ages. Every investor is investing towards his or her retirement till the age of 58.
Tania started investing at a young age of 23. By the time she will reach her retirement, she will have close to ₹2 crore in her retirement kitty assuming her investments fetched 12% rate of return annually. Look at the table below.
Devansh started five years later at 28. He started with the same amount of ₹3,000 per month. He will accumulate almost half the money as Tania. That's a big difference...!!! He will have over ₹1 crore at 58 as his retirement corpus.
Vishal, the third investor started at 35. He has 23 years to retire. At 12% rate of return, he will be able to save ₹44 lakh towards his retirement, much lower than the other two investors.
These numbers explain the merit of starting early to invest for your long term goals. Start with the small amount when you are young. You can then keep on increasing your investments at the later stages of your life.