A new analysis highlights the long-term value of starting early with small but regular investments. While many Australians delay investing until later in life, data shows this delay could cost as much as $830k by retirement. 

Why? 

Because the more you wait, the greater the chances are of money loss.  The findings even revealed that wealth growth isn’t just about how much you earn or invest. It’s not driven by income, investment knowledge, or even budget. What makes the greatest difference is when you start.

Same Goal, Different Timing

For example, two people are there with the same goal, that is, to grow their money through investing. One starts early, investing just $5 daily at age 20. The other individual waits until the age of 40 and makes a larger, more consistent monthly contribution of $500.

The result is that, despite investing more, the late starter ends up with less than half the final balance.  

Compounding in Action

If we look deeper into the context, this is what happened: 

The early investor’s edge comes from time and compounding.  That small $5 daily contribution begins growing sooner and continues to grow on top of itself over decades. 

However, using the 30-year average property investment return of 9.8%, the early investor reaches over $1.48 million by age 65. 

And if the later investor wants the same outcome, he has to invest $1,250 per month. That means  almost ten times more than the original daily amount. 

The Cost of Delay

Even if you are late by a year, it has a measurable impact on your wealth. Starting at 21 instead of 20 could mean a $140,000 difference in final balance. Waiting until age 25 results in a $580,000 shortfall. 

And at 30, the gap could stretch to $940,000. This shows how quickly the opportunity cost rises when action is delayed.  

Action Over Perfection

Building wealth doesn’t require a high income or perfect timing. It begins by starting early, staying consistent, and allowing time to work in your favour.

Even small investments can lead to significant outcomes over time. Many people are already considering this and investing in a property portfolio with the right mortgage and property advice. 

For example, you can consider first home guarantee schemes for saving more on deposits as a first-time buyer. However, if you are an investor, you can plan your investments early with the expert’s guidance.  

All this just gives one conclusion, the longer you wait, the more effort it takes to meet your goals. Most people focus on saving more or waiting for financial stability. But consistent early action is actually what creates options and shapes stronger outcomes.

Final Thoughts 

Starting early isn’t a choice, it’s a necessity if you want to build a strong property portfolio ahead. As the example suggested, starting early, even with a small amount, can help improve wealth at the time of retirement. 

However, if you wait until retirement, it will cost you more, around $830k, with more effort to achieve your desired outcomes. It will end up with just two outcomes. Either you will start early with $5 per day and achieve high-performing wealth, or pay thousands per month later to achieve it.

Need more help planning your property investment portfolio? Give us a call at 1300 GET LOAN, 0456 456 267 or book an appointment.