Is it ever too late to start investing?
Written and accurate as at: Jun 13, 2025 Current Stats & Facts
It’s true that those who start investing early have an advantage, as their investments have more time to grow. But that doesn’t mean there’s no hope for latecomers. If you haven’t yet started investing, or you’ve begun your investing journey later on in life, here are a few things to help keep you motivated.
Better late than never
Don’t let all the media coverage and workplace chatter fool you – not everyone is an investor. In fact, a 2023 study by the ASX found that some 8 million Australians (or 40% of the adult population) have never held an investment outside their home or super.
Why are so many Aussies staying on the sidelines? It often comes down to a lack of money, interest or confidence. These can be tough hurdles to clear, so give yourself some credit for overcoming them. From here, it’s all about getting a handle on the fundamentals and staying disciplined.
Mastering the basics can make all the difference
While no one’s expecting you to be an expert from the get-go, there are a few key principles you’ll need to get your head around. For example, it pays to spread your risk across different investments. That means not going all in on a single company or industry.
It’s also important to keep track of your investments, including when you bought a particular asset, how much it cost, and how much you paid in brokerage fees. This can help you know if you’re on track to hit your goals, but it will also make your life easier come tax time.
Risk can be scary even for seasoned investors
Short-term market fluctuations are part and parcel of investing, so do your best not to be too rattled when the market is having a bad day. Yes, developing a tolerance for volatility can be difficult when you’re just starting out, but it might help to remember a few things.
For one, selling in a panic when markets dip means missing out on the potential bounce back, and historically, markets do tend to recover over time.
Second, staying the course – and in fact, continuing to grow your investments – is more or less the strategy millions of people rely on with their super. Each month, your employer invests a fixed amount on your behalf, regardless of how the market is performing. This helps smooth out the ups and downs of the market, and the end result, hopefully, is a tidy sum waiting for you by the time you retire.
Where there’s a will, there’s a way
As someone who’s investing later in life, you have less time to reap the benefits of compound interest compared to someone younger. But that’s no reason to feel discouraged. It just means you’ll just have to work a little bit harder to make up for lost time.
Depending on your goals and income, you might have to commit to saving more aggressively. Start by tracking your expenses for a month (there are plenty of apps that can help with this) and identifying areas where you might be able to cut back. If you can increase the proportion of your income that goes towards investments, it might help bring you in line with those who had a headstart.
The bottom line
A common sentiment among investors of all stripes is wishing they had started sooner, and as a latecomer, you’ve probably felt that twinge of regret yourself on more than one occasion.
But starting later doesn’t necessarily mean starting from scratch. Chances are you have savings, an established career, and a degree of financial literacy that many younger investors lack. When combined with a carefully considered plan (and financial advice where needed), these can all be valuable assets in your journey.