There’s an old saying in finance that goes, “Time in the market beats timing the market.” But what’s less often discussed is the silent cost of waiting—the invisible loss that accumulates when you postpone investing, even for a few months or a year. For many beginner investors, hesitation feels safe. Waiting for the “right moment,” the “perfect amount” to invest, or more financial knowledge may seem responsible. But ironically, it’s often one of the most expensive decisions you can make.
When it comes to building wealth, time isn’t just helpful—it’s everything. And the earlier you start, the more powerful the compounding effect becomes.
Time Is Your Greatest Asset
Let’s start with a simple scenario. Imagine two people: Sara starts investing € 200 per month at age 25, while Luca waits until he turns 35 to start the same plan. By the time they’re both 65, assuming a modest 6% annual return, Sara ends up with roughly € 395,000. Luca? Around € 203,000.
That 10-year head start didn’t just earn Sara a little more—it earned her almost double, despite investing the same monthly amount.
This isn’t magic. It’s the power of compounding interest, where your earnings generate their own earnings over time. The earlier your money starts working, the less heavy lifting you have to do later. Every year you delay removes exponential potential from your future portfolio.
Inflation Doesn’t Wait for You
Another hidden danger of waiting is inflation. While your money sits idle—perhaps in a checking account or low-yield savings account—it’s quietly losing purchasing power. In 2022 and 2023, inflation spiked across Europe, reaching levels not seen in decades. Even though it’s expected to cool down, projections suggest inflation could hover around 2–3% annually for years.
That means that € 1,000 today might only be worth € 800 – € 850 in real terms a decade from now, depending on inflation’s trajectory. Investing, especially in assets like stocks, real estate, or inflation-linked bonds, provides a potential buffer against this erosion.
Waiting doesn’t just mean you’re not gaining—it often means you’re actively losing.
The Myth of the Perfect Timing
A major reason many people delay investing is fear—of volatility, of not knowing enough, of losing money. It’s a natural impulse, especially when markets seem uncertain or the news is filled with headlines about corrections and crises.
But here’s the reality: no one can predict the perfect moment to invest. Even seasoned professionals get it wrong. A 2021 study by Charles Schwab found that investing immediately in a lump sum—even just in an index fund—beat market timing strategies around 70% of the time over the past 20 years.
The best approach? Start small, start consistently, and stay the course.
Small Steps, Big Impact
If you feel overwhelmed, remember this: you don’t need to wait until you have € 5,000 to invest. Thanks to fractional investing and low-cost platforms like Trade Republic, Moneyfarm, or Fineco, you can start with € 1.
Even € 50 per month, started today rather than in six months, can compound into tens of thousands over the decades. The trick isn’t perfection—it’s consistency.
And the numbers back it up. A person who invests € 100/month starting at age 30 and stops at 40 (10 years of contributions) will often have more money at 65 than someone who waits until 40 and invests € 100/month until 65 (25 years of contributions), assuming the same rate of return. It’s counterintuitive, but it’s math.
Getting Started Doesn’t Have to Be Complicated
The good news is that the barrier to entry has never been lower. You don’t need to be a market expert. Start with a diversified ETF, set up an automatic contribution, and revisit it once a year. It’s not about chasing the next big stock—it’s about putting your money to work, early and often.
Think of investing as planting a tree. The best time to do it was 10 years ago. The second-best time? Today.
Start Now, Thank Yourself Later
The cost of waiting isn’t just theoretical—it’s measurable, real, and irreversible. But the solution is simple: action. You don’t need to know everything. You don’t need thousands of euros. You just need to begin.
Each day you wait, your future self is missing out on the compounding effect that could turn small habits into life-changing outcomes. Don’t let fear or perfectionism hold you back. The earlier you start, the more powerful your financial journey becomes.
Time is money—and starting now is the greatest gift you can give your future.
