This is one piece of advice that most everyone agrees with, but the second part is not talked about nearly as often. You’ve probably all heard about the importance of investing as soon as you can because of the power of compounding. Countless comparisons have drawn, scenarios calculated and information regurgitated regarding this topic.

We’ve all been told that $10,000 invested at age 25 will yield significantly more than the same amount invested at, say, age 40. This really isn’t anything new. Statements like this, however, tend to direct people more towards an infrequent lump sum investing style. This becomes problematic because most people’s finances are not lump sum oriented, and the only time they then “get around to investing” is when they receive a tax refund, a gift, or some other one time occurrence.

It is important to begin investing early, but we need to also invest more often and regularly. Investing should be an ongoing part of our finances. Most people receive paychecks on a bi-weekly, bi-monthly, or monthly basis. Investing should then be factored into your regular cash flows. It may help you to think of investing as another “bill” that you need to pay. Eventually, it’ll become a regular part of your financial routine.

As you begin to adopt a more regular investing schedule, it’ll become easier and eventually a normal part of your finances. You’ll find that you really can afford to invest if you’ll take a small part of each paycheck and get into the habit. Over time, you’ll find ways to increase how much you allocate for investing.

Bottom line: Begin investing early, but also often.

 Subscribe to Fiscal Musings | Digg This! | Stumble it!