Why Should I Start Investing?

Maybe you keep telling yourself you'll start investing when you make a little bit more money or that you'll do it next week. Or maybe you're weary of the market and you'll wait things out. When you wait things out, you're losing in two ways: You're sacrificing time your investments could be compounding, and timing the stock market is extremely difficult.

Here's why there's no better time to create your financial freedom than right this minute.

If you have plenty of time for your money to grow (think decades), you have plenty of time to withstand whatever changes the market goes through. But the longer you wait to invest, the more compounding interest you're losing. And speaking of those two words...

Not only is time on your side when you're investing, but you'll also reap the benefits of compound interest, something Albert Einstein coined as, "the eighth wonder of the world."

As Benjamin Franklin described it: "Money makes money. And the money that money makes, makes money." Here's how it works in simple numbers.

Say you invest $1,000 this year and you earn a 10% return on that $1,000, meaning you make $100 on your original investment of $1,000. So, you end up with $1,100.

If you don't contribute anything next year, you STILL make money. How's that possible? Compound interest. Say you earn the same 10% return on your now $1,100 balance. Instead of earning another $100, you'll actually earn $110 because you're getting that 10% return on a larger balance. Now you have $1,210. It's that simple.

Do you often wonder where your money is going? You see it deposited into your bank account, but then suddenly...it's spent. By investing that money, you're giving your dollars a "job" to do - making YOU wealthier over time.

That being said, investing isn't about getting rich. It's about building a financial safety net for you and your family. Life happens and wouldn't it give you peace of mind to know when emergencies or unforeseen circumstances arise, you have planned ahead and are able to provide for your family? Or even better, what if you could choose when to stop working when you wanted to, not when you needed to There's no better time to start than now!

When asked the question, what is the one piece of investing advice they'd give to their younger selves, most investors will answer: "start earlier." Successful investors regret that they didn't make investing apart of their routine early in their careers.

There are so many ways to invest out there and some are just a few clicks on your phone. There are apps and online brokerage platforms that are readily available.

Another easy way to invest and grow your money is through your retirement plan at work. Most employers offer a 401(k) where you to take a portion of your paycheck and invest it for your future. If your employer offers a 401(k), consider signing up - your human resources department can help you get started. If you're already making contributions, consider increasing the amount or max it out. The best way to invest in a 401(k) is to make sure you're contributing enough to get your employer match. This is free money!

Another way to jumpstart your investing is through a personal retirement savings account, like a Traditional Individual Retirement Account (IRA) or Roth IRA.

If you don't know where to begin, it might be beneficial to pay a visit to your local bank or consider getting a financial advisor. They can help identify products and services to maximize your finances.

All investments have risks associated with them. Not all investments can be considered equal. Some are more risky than others and you should take great consideration before choosing an investment. As always, it is important to consult a financial advisor that can assist in helping you plan for your future.

The bottom line is, it's never too late to start investing. So what are you waiting for? Your future self will thank you.

Pioneer and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.