Putting Off Investing Could Cost You More Than You Think

Many people delay investing because they feel unprepared, fear making mistakes, or believe they need a large sum to begin. But this kind of “investment procrastination” — often driven by uncertainty or hesitation — can significantly hinder long-term wealth building.

The truth? You don’t need to be an expert to start investing. You just need to begin.

There’s No Perfect Time — Just Sooner Is Better

When it comes to long-term investment returns, two factors matter most: how much time your money is invested and the return rate.

Vanguard’s Digital Index Chart illustrates how different asset classes have performed over the past 50 years. Consider this: if you had invested $10,000 in the Australian share market in 1995, it could be worth $143,786 by 2025 — despite market ups and downs.1 By contrast, the same amount left in cash would have grown to just $33,677.2

Now imagine delaying your investment:

Waiting five years (starting in 2000) reduces that future value to $73,694.3
Waiting ten years (starting in 2005) brings it down further to $46,952.4

The takeaway? Starting sooner can make a significant difference. To explore these scenarios further, check out Vanguard’s Digital Index Chart.

While these figures are illustrative and not predictive of future results, they highlight a powerful truth: time in the market matters.

Confidence Comes After Action

A common myth about investing is that you need to feel confident before starting. In reality, confidence is built through experience. Many successful investors began with little knowledge — they started small, learned through trial and error, and improved over time.

Even Warren Buffett, arguably the world’s most well-known investor, made his first investment at age 11 — not with expertise, but curiosity.

Adopting a growth mindset — the belief that skills and understanding can be developed with effort — helps shift focus from “getting it right” to “getting started.”

The earlier you begin, even with small amounts, the more time you have to learn, gain confidence, and grow your investments.

Rick Maggi, CFP, Financial Advisor Perth

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Important notes: Past performance information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.

1 Source: Vanguard Digital Index Chart. Investment of $10,000 into Australian shares on 1 July 1995 would have been worth $143,786 on 30 June 2025. Based on S&P/ASX All Ordinaries Total Return Index performance, assuming no acquisition costs, fees or taxes, with all distributions reinvested.

2 Source: Vanguard Digital Index Chart. Investment of $10,000 into cash on 1 July 1995 would have been worth $33,677 on 30 June 2025. Based on the Bloomberg AusBond Bank Bill Index.

3 Source: Vanguard Digital Index Chart. Investment of $10,000 into Australian shares on 1 July 2000 would have been worth $73,694 on 30 June 2025. Based on S&P/ASX All Ordinaries Total Return Index performance, assuming no acquisition costs, fees or taxes, with all distributions reinvested.

4 Source: Vanguard Digital Index Chart. Investment of $10,000 into Australian shares on 1 July 2005 would have been worth $46,952 on 30 June 2025. Based on S&P/ASX All Ordinaries Total Return Index performance, assuming no acquisition costs, fees or taxes, with all distributions reinvested.