The earlier you start saving money, the smaller the regular sums you have to save are to reach your target. Over a number of years, your savings will accrue compound interest. More value to your savings.
The earlier you start saving money, the smaller the regular sums you have to save are to reach your target. Over a number of years, your savings will accrue compound interest. For instance, the capital you invest will double in about 15 years if the return on your investment is five per cent.
Usually the best way is to put away a certain amount on paydays: when you do not see the money, you will not miss it, either.
For example, if you save:
Since market movements are impossible to forecast, it is difficult to time your investments at the best possible moment.
When you invest in several increments instead of everything in one go, you can avoid the risk related to timing.
By investing regularly, you can reduce the effect of market fluctuations over the long term, so you won't need to fret about market movements.
The biggest benefit from time diversification can be gained by investing in assets with a highly fluctuating value. Such assets include equities, for example.
When you buy units in equity funds or balanced funds on a regular basis, some of your units will inevitably be bought at a time when their price is high, but the regularity of your investments will ensure that some are bought at the lowest prices.
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