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Investing Today vs. Next Week vs. Next Month

Where are you going to be 6 months from today? It’s hard to say.

What are you going to be doing 6 months from today? It’s tough to predict.

How much money will you have 6 months from today? That – well that’s just simple math.

We want to help you more definitively answer this (very important!) question and see for yourself what a difference the starting point of your investments can make.

Let’s say you have 6 months from today to invest and grow your money as much as possible. And let’s see 3 scenarios for this – you start investing a month from today (and get only 5 months worth of investment), you start investing a week from today (so you get 5 months and 3 weeks worth of investment) or you start investing TODAY (and make use of every day in this 6-month investment period). 

So let’s go – how much money will you have if you start investing ..

1… One Month From Today – Uh oh! Looks like you took the late train to hop onto the investment journey. Don’t be disheartened because there is still merit in investing one month from today.

So, let’s say you use the Deciml App, a month from today, and you invest ₹100 on day 1. You immediately start earning an interest of 10% per annum on this investment (it really is that simple!). The next day, you are going to add another ₹100 to your investments, and this will be grouped with your previous day’s investments plus earnings.

 

As this process goes on, your principal amount keeps increasing each day, and so, obviously, does your interest earned. 

This means, if you start investing a month from now, then 6 months from now you will have a total amount of ₹15,518.76, of which ₹318.76 will be the interest earned on your investments. Your percentage profit here is 2.1%. Keep that number in mind!

 

2… One Week From Today – We’re glad you’re starting sooner rather than later! So, a week from today, you start investing ₹100 every day using the Deciml App, up until 6 months from today. 

When you carry out these calculations, you will find that at the end of 5 months and 3 weeks, you will have accumulated a total of ₹17,714.06, of which your interest earned is ₹414.06. Your percentage profit is 2.4% here. That’s 0.3% more than what it would have been if you had waited three more weeks to start investing!  

3… Today – No time like the present! You’ve seen what a difference three weeks can make. But would you believe that even one week can make a HUGE difference! If you start investing ₹100 every day using Deciml App today, and diligently invest an additional ₹100 every day for 6 months, your interest calculator will look like this –

A 6-month investment period will therefore yield you a total amount of ₹18,658.77, of which ₹458.77 will be your interest earned. This brings your profit to 2.5%. Did you notice that just a week’s difference increases your profit percentage by 0.1%? This is why we urge our young investors to take the plunge today – every day passed, is a day wasted!

We are going by a 6-month timeline to illustrate how investing now can be more fruitful than tomorrow, next week, or next month. The differences are staggering and in only such a short period of time. So can you imagine just how much you can benefit from compounding if you invest for even longer periods of time?

It is safe to say that three mildly varying starting points will yield you significantly varying results in a period of 6 months. However, this summation begs the question – why is this the case?

The answer is – compounding! Compounding interest is the most useful tool when applied over a long period of time. So, the longer your tenure of investment, the more you’ll earn through compounding interest – which is why waiting a week or a month to start investing can cost you the earnings of that week and month in the long run. 

At Deciml, we are ardent supporters of the ‘Invest Today’ campaign because the benefits of compounding are simply too appealing to start any later. The bottom line is this – you work hard to make your money. But it can be quite simple to start micro-investing small amounts consistently, to make your money work for you! So, why wait?



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