Now is the Time

Stacked three piles of penniesI have been getting quite a few questions from different people on the topic of when is the right time to start investing into the stock market. This is not surprising question to me as I have asked myself this question many times over and as perhaps some of our answers change this one has stayed the same. The right time to start investing is NOW, not six months from now, not when you come back from vacation, not when you build up a large sum of money, not when you win a lottery, not when you get married, not when nothing! Now and no excuses, because that is all they are! Procrastinating is a killer of dreams, retirement, relationships, health, opportunity and thousand other things.

Compound Interest

Time is really important factor that we have here on the planet and compound interest relies a ton on time. Compound interest is the most powerful weapon towards retirement you can have and many don’t even realize or take it for granted. Many people look at the short end of the stick when talking about compound interest and its full effects, but compound interest should be looked at over 10, 20 or even 30 years of time. That is the magic, those 4% annual returns add up to the other 10% next year and 27% like we had in 2013. No wonder Albert Einstein said it was “the greatest mathematical discovery of all time”.


We live in extremely technologically fast world when compared to 10 or 20 years ago. Technology has been advancing at an astounding rate and that my friends is great news even for average investor. With brokerages like E*Trade, Scotttrade and many others, investing has been totally simplified. You can place a buy or sell order very easily now a days. Living in technologically advanced country should be a priority using its effectiveness in investing because developing countries don’t have that freedom.


I strongly believe the process of building wealth requires spending less than you earn. Someone can have a great career and make 100k annually, but if they spend it all there isn’t any money left to invest. Therefore, I preach constantly that in order to be an investor you need get your inner gratification under control. The inner voice that pleads, moans and begs for more and more constantly. If this inner form is not groomed, the thirst for always better, more and now will leave you broke month after month. There will never be enough money or it may seem like it because the account will be always sucked dry.

To truly save means actual act of trying save a percentage of income, not just talking about it. No one has to make significantly large amount of money just to save. We are all capable in doing so no matter what is the salary. Being creative and being somewhat not wasteful will do you wonders. Savings rate is so unique because the more you save, the more money you will have to invest, in which not only your income will grow if investing in quality dividend stock, but your savings rate as well. Savings and investing rely on each other, therefore if never started it can never be created.


  1. TwoInvesting on June 21, 2014 at 15:13

    Thanks for the article. Compounding interest is amazing. I’ve been slowly adding to my account over the last 3 years and am already beginning to see the positive effects of a few of the dividend increases.

    I preached dividend growth investing to some guys at work and, unfortunately, am not sure if they can see the light and the end of the tunnel yet. They mostly care about the current appreciated value of their investments and are having trouble seeing the income generating potential in the future. As I’m seeing in my own accounts and from reading sites like yours and Dividend Mantra, the snowball begins soon enough.

    • DividendVet on June 21, 2014 at 18:28

      My pleasure. Thats is great to hear and make sure to keep on chugging along. No one can see, feel or touch compound interest, but it sure does exist. Glad you have experienced it!

      Yes, you know I have had similar situations with some people I know. You see, it is quite simple really, they don’t talk the same language we are talking. It is unfortunate, but that is the way it is. Lets hope one day we can talk to more people who know this language.

      Thank you for reading.

  2. Asset-Grinder on May 31, 2014 at 21:45

    I agree the sooner you start the better. I was thinking before I invested in a large portfolio I would try and time the market. But what for! There could be many years till another big market correction and I could be buying at 2014 levels in 2018. Plus Investments made now receive dividends now further softening any blow. Nobody has a crystal ball of the future so it makes no sense on waiting for the future.

    Great article and Grind On!

    • DividendVet on May 31, 2014 at 22:10

      Absolutely the sooner the better. Actually, I try not to time the market, but pick and choose a best possible investment at the time I have capital available. With U.S. market being so large there are always deals available for picking, the hard part is uncovering them.

      Take it easy.

  3. DividendMongrel on May 30, 2014 at 17:04

    Hey DV, very good article about investing and compound interest. It surprises me how many people don’t take advantage of investing early. Thanks for sharing on this topic.

    • DividendVet on May 31, 2014 at 16:23

      Thank you. Yeah, you know I think people underestimate the power of compound interest or don’t fully understand its full effect. Schools or any other institutions will not teach this. So reading books and researching online is extremely important.

      Have a nice day.

  4. JC @ on May 29, 2014 at 22:18

    Today is definitely a good day to get started. And if you missed out on today then you better do it tomorrow. While saving money from your day job to invest is extremely important, for those looking to reach FI/ER there’s the hidden bonus that every dollar you save is a dollar you don’t need to support your lifestyle. If I make $3k per month but save $1.5k I only need my portfolio to support a $1.5k lifestyle even though my income is $3k.

    • DividendVet on May 29, 2014 at 23:21

      Exactly. Procrastinating about investing will never get the ball rolling. More than anything it will make you loose focus and spend money somewhere where there is no significance to the future.

      When I first started investing, it truly made me save more money month in and month out. I could see dividends getting compounded and growing, not like in a checking account. That really motivated me and I saw it clear that being financially free means more than anything to me. I am enjoying the journey while still enjoying my life.

      Glad to have you stop by.

  5. DivHut on May 26, 2014 at 07:32

    The best time to start investing is yesterday. Plain and simple. A person sits in the shade of a tree that was planted 20 years ago.

    • DividendVet on May 26, 2014 at 14:23

      Yesterday would be great if you could magically go back in time. So starting now is the realistic next best thing.

      Love your analogy of a tree, I hope my tree will get big enough to cover me.

      Take care.

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