Investing early gives you financial flexibility

Many people do not invest, either because they feel uncertain or because short-term targets seem more important. But those who start early gain a decisive advantage: time. It is the most powerful factor in the investment process. Over the years, it amplifies even modest returns, smooths out market fluctuations and helps maintain purchasing power despite inflation.

Even though inflation rates have fallen since peaking in 2022, even low inflation leads to a loss of purchasing power. Money that is not invested therefore loses value in the long term. The price of your favourite drink rising from 1.50 to 2 francs may not seem like a big deal, but over the years a cumulative effect builds up that places a noticeable strain on your budget. If you don’t put your money to work, you’re fighting against a constantly rising wall of prices.

Time beats timing

A widespread misconception is that you need to catch the perfect moment to get in. It is actually the other way round: anyone who has invested in the S&P 500 share index over the last 30 years and missed the five best trading days would have achieved only half the total return. The key takeaway: the market rewards patience, not perfection. Being invested and staying invested is crucial. That does not mean the value of the invested assets does not fluctuate or occasionally dip.

Many investors fail less because of the market than because of their own reactions. Headlines and price fluctuations trigger fears and emotions that can lead to hasty decisions. Those who are constantly searching for the ideal moment react to every market rumour, trade too frequently or exit during turbulent periods – and thus miss out on the long-term trend.

The psychology of delayed gratification

For many people, it is challenging to forego an immediate reward. In investing, this means delaying consumption. Those who start early and regularly put money into their portfolio benefit particularly strongly from the compound interest effect. This is the reward of saving in securities, provided the interest income is not spent but reinvested. Because then this income will also earn interest in the future.

How to get started? Certainly not by wading through thousands of equities and bonds. Investment funds and their exchange-traded versions (ETFs) provide easy access to financial investments, reduce risks through broad diversification and allow scope for personal preferences such as sustainability or investment themes like digitalisation.

A well-considered start is particularly valuable for younger investors. All too often, they opt for investments that promise quick returns but carry high risks and can therefore lead to disappointment. Regular investments, for example via an automatic savings plan, on the other hand, support long-term wealth accumulation. The average cost effect ensures a balanced entry, and automated processes help to avoid emotional misjudgements during market fluctuations.

Start, gain experience, stick with it

The best time to start investing is today. It doesn’t require large sums, but rather consistency, a steady hand and a clear structure. Those who give their wealth time create financial leeway that can be enjoyed later in life. The key is to take the first step and stick with it for the long term.