Start Investing Early: The Key to Building Long-Term Wealth

By Tokiso TKay Nthebe

When I started my corporate career in Lesotho as a 23-year-old graduate trainee, one of my biggest regrets was not beginning my investment journey sooner. Instead of prioritising investing, I spent my money on takeouts, nights out, clothes, and taking on unnecessary debt. While there is nothing inherently wrong with enjoying life or treating yourself, these expenses should be planned and budgeted for. 

Had I started investing earlier, I could have achieved many more financial milestones by now. If you have made similar financial mistakes or are just starting your career, remember it is never too late to change course and start investing. This blog provides practical tips to help you start your investment journey as early as possible. 

What Is Investing?

First, it is important to understand the difference between saving and investing. Saving is typically for short-term goals and involves putting money aside with minimal risk. Investing, on the other hand, involves placing money in financial markets with the aim of growing it over time. Investing carries some level of risk but offers the potential for higher returns. It is also a long-term commitment.

Before you start investing, there are a few key factors to consider such as:

– The type of investment vehicle (e.g., stocks, bonds, collective investment schemes).

– Your risk tolerance or how much risk you are willing to take or tolerate.

– Your investment time horizon which refers to how long you are investing.

What are the benefits of starting early

Time is your greatest ally when it comes to investing. Experts stress the importance of starting early to take advantage of compound interest—the process where your money earns interest on interest over time. The earlier you start, the more time your money has to grow and compound. This is also referred to as the ‘eighth wonder’ of the world!

To bring this concept closer to home, let us consider the following example below to understand the time value of money. Meet Nthabeleng, who starts investing LSL500 monthly at age 20 and stays invested until retirement. Compare this to someone who starts 10, 20, or even 30 years later.

Table 1: Investing and starting at different ages.

*For illustration purposes ONLY: Does not factor for inflation or escalations of contributions.

By starting early, Nthabeleng’s investment grows to LSL1.3 million, significantly outpacing the returns of someone who starts a decade or two later. This exponential growth is due to compounding interest, where your money earns interest on both the principal and the accumulated interest.

From the example above, here are key investment lessons to help you navigate your investment journey. 

1. Investing is a long-term game

There are no shortcuts to building wealth, however, you need to start. I encourage you to start early, be patient,  and develop a clear strategy.

2. Research and choose wisely 

 Pause, think before deciding. Do not believe everything you watch or read online. Do your due diligence, get professional advice and always work with licensed and reputable financial institutions.

3. It is never too late to start

Even if you missed starting in your 20s or 30s, you can still begin now. The important thing is to start.

4. You do not need large sums to start 

Start small if necessary—even LSL500 or LSL1,000 monthly can make a difference over time.

5. Leverage the power of compounding 

 Stay consistent and reinvest your interest income to maximize the benefits of compound interest.

Starting your investment journey early can transform your financial future. Remember, the most important step is the first one—no matter when you take it. Prioritise investing today and watch your wealth grow over time.

Click the link below to download the TKO Financial Wellness Investment Challenge 2025 and navigate your investments with confidence.

https://drive.google.com/file/d/1xDWbeALrujKZjnsXo_gpfTuipzOJ4O-F/view?usp=share_link

Tokiso TKay Nthebe is an author, podcast host, financial coach and lead advisor at TKO Financial Wellness & Advisory who is passionate about financial wellness, education and financial planning. 

For more visit www.tkofinancialwellness.com or email info@tkofinancialwellness.com