Most people delay their first investment for a reason that sounds prudent at the time — waiting for a raise, waiting for the market to correct, waiting until the home loan is smaller. The cost of that wait is rarely calculated, and it is almost always larger than expected.
This note works through the arithmetic with two ordinary investors, and ends with the only three things that actually determine the outcome.
The two investors
Investor A begins a ₹5,000 monthly SIP at 27 and never increases it. Investor B waits until 32, then starts at ₹15,000 — three times the amount, five years later. Both assume the same 12% annualised return and both stop at 60.
Investor B ends with more — but invests 2.5× as much to get there. Per rupee invested, the early start is far ahead.
What actually drives the result
“The best time to start was ten years ago. The second-best time is this month's salary credit.”
If you are choosing between starting small now and starting properly later, start small now — and let the step-up do the work you're waiting for a raise to do.