I am sure all of us would have read this story of Hare & Tortoise so many times in our life and would have narrated this to our kids around.
What did we learn from this story of hare & tortoise? This story has few morals / lessons to learn and they are:
Slow and steady wins the race & Procrastination is Opportunity’s assassin.
Think for a minute what happened in this story, the tortoise despite knowing its capability and strengths, it participated in the race and started walking and it had also won the race. It had won the race only because it was consistent and committed to complete the race.
While the Hare was over confident and it thought, time is with me, I can for sure win the race, so I can laze around for some time yet I can win this race. However, for hare it was a shock at the end to see tortoise winning the race because of sheer consistency.
If we relate this story with our investment / savings habits, lot of times, we procrastinate savings thinking that lets start from next month / next quarter or lets finish with these expenses / loans etc. Sometimes we think the amount left out for saving is too less so lets do it later after we accumulate more money.
Procrastination is our biggest enemy in starting this habit of investments early.
As Benjamin Franklin said “You may delay, but time will not, and lost time is never found again”. The time lost in beginning the wealth creation journey can prove to be very costly as power of compounding does wonders only when you have time in hand to give it to your investments to grow.
To give you an example, consider 10,000/- invested in monthly SIP in an equity mutual fund, see how it would have grown in 5 yrs, 15 yrs & 25 yrs.
5 yrs 15 yrs 25 yrs
Had you started early in your career & saved for 25 years every month 10k in SIP, by end of 25 years the corpus would have added upto 1.89 crs.
The same 10k every month, had you delayed starting your investments by 10 years, the corpus would have become 50.45 lakhs.
Now just imagine, had you realized and started investing in last 5 years of career, the amount would have got accumulated to only 8.24 lakhs.
Note : Average rate of return assumed to be 12%pa.
As it is said better late than never, give a portion of your money time to experience the wonders of power of compounding. You will be amazed to see its value.
To help you come out of procrastination and put your investments on track, entrust this process to a good financial advisor, whose only motto is to make you understand the benefits of staying put with an investment and walk with you in your journey to financial independence. He / She will be there to help you.