When it comes to investing, most people assume that the hardest part is picking the right stocks, analyzing market trends, or timing their trades to perfection. They spend time researching the S&P 500, the Dow, municipal bonds, and mutual funds, convinced that successful investing hinges on making the right choices. However, for many Americans, the single hardest thing about investing isn’t any of those decisions—it’s simply getting started.

Too many people delay investing because they believe they need to be experts before they begin. Others feel they don’t have enough money to make investing worthwhile. Yet, study after study has shown that the most important factor in building wealth through investing isn’t necessarily how much you invest—it’s how early you start.

The Power of Starting Early

The most powerful force in investing is compound interest. Albert Einstein reportedly called it the “eighth wonder of the world.” The concept is simple: the money you invest earns interest, and that interest earns more interest over time, creating exponential growth. The earlier you start, the more time your money has to compound.

Consider the following example:

The Power of Starting Early

The most powerful force in investing is compound interest. Albert Einstein reportedly called it the “eighth wonder of the world.” The concept is simple: the money you invest earns interest, and that interest earns more interest over time, creating exponential growth. The earlier you start, the more time your money has to compound.

Consider the following example:

• Investor A starts investing $200 per month at age 25 and continues until age 65. Over 40 years, they contribute a total of $96,000. Assuming an average annual return of 8%, their portfolio grows to $622,000 by retirement.
• Investor B delays investing until age 35 but contributes twice as much—$400 per month—until age 65. Over 30 years, they contribute a total of $144,000. Despite contributing more, their portfolio grows to only $543,000.

Even though Investor B contributed 50% more money overall, they ended up with less wealth than Investor A, simply because they started later. This example highlights that time in the market matters more than timing the market or even the amount you contribute.

The Cost of Waiting

Many people postpone investing because they think they need a larger salary or to pay off debt first. However, delaying by even a few years can have a massive impact on long-term wealth. A study by Fidelity found that people who started investing in their 20s had an average of double the retirement savings of those who waited until their 30s to start. This reinforces the fact that the sooner you start, the better off you’ll be.

The biggest mistake investors make is waiting for the “perfect time” to begin. The stock market will always have ups and downs, but history has shown that it consistently grows over the long run. The S&P 500, for example, has historically averaged an annual return of around 10% over the last century. The key is not trying to time the market, but simply being in it.

Making It Easy: Automate and Forget

One of the best ways to overcome the psychological barrier of starting is to automate your investing. Set up automatic contributions to a 401(k), IRA, or brokerage account so that money is invested before you even see it. If you contribute just $25 per week, that’s $1,300 per year—enough to start building wealth. Over time, you can increase that amount as your income grows.

Think of investing like exercise. The hardest part isn’t running a marathon—it’s lacing up your shoes and getting out the door. Similarly, the hardest part of investing isn’t making trades or studying financial reports—it’s simply getting started.

Just Do It

Remember the old Nike slogan: “Just do it.” That same philosophy applies to investing. Don’t wait until you’re a financial expert or until you have thousands of dollars saved up. Start now, even if it’s just a small amount each week. Your future self will thank you.

If you haven’t started yet, the best time to begin is today. Open an investment account, automate your contributions, and let the power of time and compounding work for you. Investing isn’t about perfection—it’s about participation. So, take that first step and just start.