If you’ve been asking yourself, “should I start investing now?”, you’re in good company. It’s one of the most common financial questions, and one of the most paralyzing.
You might be waiting for the markets to calm down. Or for a raise. Or even for that mythical “perfect moment” to move ahead. The perfect time rarely announces itself. As you bide your time, your money sits still, but inflation doesn’t.
The truth is simple, when to start investing is less about timing the market and more about time in the market. The earlier you begin, the more time your money has to grow through compounding and over time, as one of the most reliable ways to build wealth.
Starting with a small amount can also result in a meaningful difference. What matters most is creating the habit, not hitting a target. With platforms like Mintos, getting started is more streamlined than ever.
In this guide, we’ll cover everything you need to move from hesitant to confident:
Why starting investing early beats waiting for a bigger budget How to know if now is a good time to invest What to check off before you begin, like goals, debt, and your emergency fund Ways to start small, including investing with little money How to avoid common mistakes and take your first steps as a beginner investor
> Check out this guide for investing for beginners
Why starting early beats trying to time the market
Delayed investments can cost you:
- Lost time. The earlier you start, the more time your investments have to grow through reinvested returns. Starting five or ten years later may translate to earning significantly less over a lifetime. How early you start investing directly influences your long-term financial outcome.
- Mistimed market entry. Trying to predict market highs and lows might result in buying late and missing growth. It’s one of the classic first-time investment mistakes to avoid.
- Reduced risk capacity. A shorter investment horizon limits your ability to invest in growth-oriented assets and ride out market ups and downs. Without time on your side, it’s harder to recover from short-term losses. Time reduces risk, not timing.
- Lower total returns. Starting late means you may need to contribute more, for longer, to reach the same goals. This is especially challenging if you’re investing with little money.
Time in the market vs. timing the market
The concept of “time in the market” refers to the total duration an investment remains actively allocated to financial instruments. Investors benefit from extended investment horizons through compounding, early investing, as well as the recovery periods following market volatility.
To illustrate, consider two hypothetical investors:
- Investor A contributes €100 monthly starting at age 25 and continues for 40 years. Assuming a conservative annualized return of 6%, the final portfolio value approximates €198 000.
- Investor B initiates the same investment strategy a decade later, at age 35, and continues for 30 years. The resulting value under identical conditions would be approximately €100 000.
Despite identical contribution rates, Investor A achieves nearly double the outcome, primarily due to the extended compounding period. This discrepancy can’t be offset simply by increasing contribution rates at a later stage.
This illustrates why the best age to start investing is as soon as you have money to put aside, no matter how modest the amount.
> How dollar cost averaging supports compounding
What to expect from market fluctuations
Financial markets tend to move in cycles, influenced by economic conditions, policy changes, and investor behavior. Short-term fluctuations are likely to feel unpredictable, but their impact becomes less significant the longer you stay invested.
The European Central Bank reported that euro area markets have weathered several periods of sharp volatility, triggered by geopolitical shocks, elections, or unexpected economic data. Yet these episodes have typically been short-lived.
For instance, in August 2024, markets experienced a major spike in volatility, where prices moved up and down more sharply than usual. This was driven by a mix of global uncertainty and monetary policy shifts, but was followed by a swift rebound in asset prices. This pattern shows that over time, markets tend to stabilize, and investors who stay invested through downturns are likely to see their portfolios recover.
The opportunity cost of holding cash
Keeping your money in cash or a regular savings account looks like a safer option, particularly during uncertain times. Over the long run, prices for everyday things like food, rent, and services tend to go up. The same amount of money buys you less in the future, a risk called losing purchasing power.
Although your cash might appear unchanged, its real-world value diminishes over time. That’s why people turn to investments like stocks, property, or bonds. These grow in value over time and help your money keep up with rising costs.
> What is a high-yield savings account?
For instance, €10 000 held in a savings account earning 1% annually will grow to €11 046 over ten years. Adjusted for 3% annual inflation, the real value declines to approximately €8 200, meaning your money would actually lose purchasing power. This means your money would buy less in the future than it does today. In contrast, a diversified portfolio earning 4% annually would result in a real value of €12 000, demonstrating not only preservation but real growth.
Delaying investment also results in missing out on the long-term benefits of investing with little money. Modest amounts, when invested early, have the potential to deliver substantial gains over decades.
> Learn how long-term investments can lead to stronger returns
How to prepare before you invest
Starting early improves long-term investment outcomes. Nonetheless, entering the market without financial safeguards leads to unnecessary risk. Before determining when to start investing, evaluate your financial situation through the lens of stability, resilience, and goal alignment.
1. Liquidity and emergency capital reserves
A well-funded emergency reserve is a non-negotiable prerequisite for investing. Unexpected events force premature asset liquidation if sufficient cash is not available.
Best practice suggests holding three to six months of essential living expenses in easily accessible cash or savings. For individuals with variable income or dependents, a more conservative buffer of up to twelve months is advisable. These funds should be kept in low-risk, accessible places such as savings accounts or money market funds, rather than in volatile investment products.
Establishing this safety net ensures that your investment capital remains untouched, particularly when short-term financial needs arise.
> How to build an emergency fund
2. Manage debt
Before you begin investing, review your current liabilities. If you’re carrying high-interest consumer debt, such as credit cards or payday loans, it may be more beneficial to focus on repayment first.
The cost of that debt is generally higher than what you’d earn from investing. On the other hand, low-interest debt like a mortgage or student loan doesn’t always need to be paid off before you invest. The goal is to keep a healthy balance so you’re not stretching your finances too thin.
3. Define investment goals and time horizons
Setting specific financial goals is fundamental to successful investing. Before selecting products or platforms, ask yourself what you’re working toward. Common objectives include:
- Retirement savings
- Down payment for real estate
- Education funding
- Wealth accumulation for general long-term growth
Each objective should have a defined time horizon and target value. Short-term goals (0–3 years) require capital preservation and higher liquidity.
Medium to long-term goals (5+ years) accommodate higher-risk allocations with greater growth potential, including equity-linked ETFs or diversified loan-backed securities.
> Setting financial goals: How to plan for the future
4. Assessing risk tolerance and capacity
Understanding how much risk you can absorb financially and psychologically. First-time investors might overestimate their comfort with volatility until they experience a market downturn.
Risk tolerance refers to your emotional ability to withstand fluctuations, while risk capacity reflects your financial strength. Age, income stability, and family obligations all play a role.
For example, a 28-year-old with minimal debt and consistent income may choose a higher-risk, higher-reward portfolio. A 55-year-old preparing for retirement may opt for more conservative allocations, emphasizing income stability and capital preservation.
Platforms like Mintos allow users to select from automated investing options that match their individual risk profile, to balance growth and security based on personal circumstances.
Once these foundational elements are in place, an investor is well-positioned to initiate a long-term investment strategy. Readiness makes sure your investments are structured to support, not jeopardize, overall financial health.
> Avoid common first-time investor mistakes
Delaying your first investment can be more risky than starting small
Many potential investors, especially those early in their financial journey, hesitate to begin because they feel unsure about the timing. Reacting to short-term noise often comes at the expense of long-term gains. Instead, building a sustainable investment habit early, regardless of market fluctuations. This has the potential to have a far greater impact on long-term wealth.
How early should you start investing?
The answer is simple: the earlier, the better. Starting in your 20s can produce significantly better results than larger investments made later in life. Early contributions have more time to benefit from compounding, recover from market downturns, and ride out volatility.
Knowing when to start investing in your 20s can produce a substantial difference, as the benefits go beyond just the math. Younger investors commonly have higher risk tolerance by age, fewer financial obligations, and greater flexibility to adapt strategies over time. These conditions solidify the early years as the ideal window to begin developing long-term financial habits.
Recognizing readiness beyond market signals
Rather than asking “how early should I start investing?”, a more productive question is: am I financially prepared to start? This includes having an emergency fund, manageable debt, and clarity around financial goals. Once these are in place, delaying investment usually comes with forgoing long-term returns—not avoiding short-term risk.
> Proven strategies for building wealth
The cost of waiting to invest
Avoiding investment in hopes of better timing is itself a financial risk. Holding cash may feel safe, but over time, inflation erodes its value. At the same time, not investing means missing out on potential growth, especially the benefits of compounding returns. Alternatively, assets like bonds, ETFs, and diversified loans offer returns that outpace inflation during moderate economic uncertainty.
The cost of waiting is particularly high for first-time investors who may be eligible for automated investment options, fractional products, or platforms with low entry barriers. These solutions make it possible to start building a diversified portfolio with limited capital.
> Best low risk investments for 2025
> Investments other than stocks: Top alternatives for portfolio diversification
Building wealth takes time, not timing
Developing a strategy and sticking to it over time is what drives results. The biggest gains often come gradually, not all at once. This is why knowing how to build wealth over time starts with action, not perfection.
Waiting for certainty in uncertain markets is a paradox. What matters most is beginning when you’re financially able and staying invested with discipline.
> Earn monthly interest on your money
You don’t need a fortune to start investing with Mintos
A common misconception is that investing requires large sums of capital. In reality, investing with little money is not only feasible, it’s a proven strategy for those who start early and stay consistent. Contributions made regularly can compound over time into substantial long-term gains.
One of the most important tips for first-time investors is that the amount matters less than the habit. Starting with €50 a month builds both confidence and momentum. Don’t focus on making the perfect move. Just make a start.
Mintos supports this approach by offering access to diversified income-generating assets with low minimum investments, transparent risk scoring, and automated tools that help you stay invested without daily management. This allows you to grow your portfolio in line with your goals and timeline, not market headlines.
Explore a variety of options tailored to different goals and risk profiles:
- Loans – Earn regular interest payments, diversify across sectors and regions, and choose between automated or hands-on investing.
- Bonds – Invest from €50, earn fixed returns, and diversify your investments. A great option for those looking for steady, passive income.
- Passive real estate – Generate monthly rental income from property-backed investments with a lower entry point than direct ownership.
- Smart Cash – Access a money market fund with the highest rating that offers higher interest than traditional savings with same-day withdrawals.
- ETFs – Invest in ETFs globally with a single portfolio, enjoy diversification, and zero commission fees, starting from just €50.
Disclaimer
This is a marketing communication and in no way should be viewed as investment research, advice, or a recommendation to invest. The value of your investment can go up as well as down, and you may lose part or all of your invested capital. Past performance of financial instruments does not guarantee future returns. Investing in financial instruments involves risk; before investing, consider your knowledge, experience, financial situation, and investment objectives.
Any scenarios or examples provided are for illustrative purposes only. They do not guarantee specific outcomes or returns and should not be relied upon when making investment decisions. Actual results may vary based on market conditions, issuer performance, and other factors.