Welcome to reThinkable: a weekly newsletter where I share actionable ideas to uplevel your finances, personal growth, and productivity.

Today, we’ll cover:

The biggest misconception about investing and building wealth

When is the best time to start investing?

Free investing resources to help you get started

Estimated read time: 2 minutes

The biggest misconception about investing is that you need a lot of money to start.

Many people delay investing until they’ve saved up a significant amount of money. 

This is a mistake. By waiting, you miss out on the most valuable aspect of investing: time.

Starting early, even with small amounts, can be more beneficial than waiting to invest a larger sum later.

A Tale of Two Investors

Let’s say we have two people who are both the same age, but wait until different moments in their life to start investing.

Alex: The Early Starter

Alex starts investing at 25 years old. She can afford to invest $5,000 a year. 

After 10 years, she has contributed $50,000 and decides to let the investment just chill and grow at an annualized rate of 7%.

Brooke: The Late Bloomer

Brooke wasn’t ready to jump into investing right away. 

She waited until age 35 to get started. Like Alex, she invests $5,000 each year, but continues contributing for 30 years until age 65. 

She contributes a total of $150,000, and her investments also grow at an annualized rate of 7%.

The Results

By 65, Alex will have about $602,070 in her portfolio, while Brooke—despite investing far more and for longer—ends up with $540,741.

Even though Brooke contributed 3x more than Alex, Alex’s early start gave her the advantage. The extra 10 years Alex’s money spent compounding is what made all the difference.

Just like how a snowball rolling downhill grows larger as it picks up more snow, compounding interest works the same way—the earlier you start, the more momentum your investment gains over time.

The Time is Now

If you’re still on the fence about investing, you lose money in 2 ways:

Your money loses value overtime because of inflation

You miss out on the potential investment gains from being on the sideline

Even small amounts matter — that extra $27 you spend every week on needless things could grow into tens of thousands in just a few years.

If you’re ready to put these principles into action, here are two ways I can help:

1. Take Action

Start investing with my favorite brokerage, moomoo. I’ve been using moomoo for ~4 years now and I love how easy it is to use. If you feel like investing sounds intimidating, I highly recommend trying it out for yourself.

Plus, if you sign up with my link, you get:

Up to 15 free stocks when you make a qualified deposit 

8.1% interest (APY) on any cash you don’t invest

2. Learn The Basics

Then, get my free Investing Cheat Sheet to walk you through the basics of investing. It has a bunch of helpful tools like:

Investing checklist to get you started

Investment growth calculator to see how your money can grow overtime

Breakdown of investing basics and terminology

The best time to start investing was yesterday. The next best time is today.

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