# How much money you lose by not investing

ðŸ’¸Investing is an essential part of any financial plan. Unfortunately, many people donâ€™t invest their savings.

This can be crippling to your long-term financial healthðŸ’¡. To better understand why, letâ€™s take a look at some numbers so you can see exactly what you lose by not investing.

You Will Need Funds in Retirement and ideally, you need a retirement fund separate from your pension(s). The Cost of Not Investing Â£20 Per Month

If you were to invest Â£20 every month and earn 10 percentâ€”roughly the annual return of the S&P 500 over timeâ€”you would have Â£26,537 at the end of 25 years.

The cost of not investing Â£20 per month over the course of your career is over Â£20,000! This isnâ€™t chump change. Imagine how far Â£20,000 goes in retirement. For many people, that is half a year â€™s retirement income. ðŸ’°

If you put your money in a savings account, you are losing out compared to investing in the markets. The best savings account interest rates today are around 1%; at the end of 25 years saving Â£20 per month you would have Â£6,819.08. Incredibly short of what youâ€™d get by investing in the markets.

The Cost of Not Investing Grows With Your Ability to Save.Odds are you spend at least Â£70 per month on something you donâ€™t really need.ðŸ“±ðŸŽ§ If you invest Â£70 per month, you would end 25 years of investing with Â£92,878â€”again, assuming an average annual return of 10% per year, compounded monthly.

Of course, inflation ðŸš€means that Â£92,878 wonâ€™t go nearly as far in 25 years as it does today. So letâ€™s take it even further. If you were to invest Â£211 per month for 25 years at the average return of the S&P 500, you would have Â£608,131.98.

Now weâ€™re talking! This is still below what many people need to retire, but it puts you well on the way.

Donâ€™t Lose Out by Ignoring the Power of Investing

Even Warren Buffet started with his first investment.

You can come up with a list of reasons not to invest, but I can give you 20,000 reasons(okay, maybe not 20,000) you should start investing at least Â£20 per monthâ€”and even more reasons to invest even more.âœˆ Every day you wait to invest, you are losing out. Stop losing and let your money work for you.