How ‘investment procrastination’ could be hurting your wealth

Putting off investing could cost you more than you think

Many people delay investing because they feel they don’t know enough, are afraid of making mistakes or believe they need a large sum to begin.

This ‘investment procrastination’ — which can be a result of uncertainty, fear or hesitation — can limit their ability to build long-term wealth.

The truth is you don’t need to be an expert to start investing. You just need to take the first step.

Don’t wait for the perfect time to start

Long-term investment returns come down to two key factors: the rate of return and the time invested. 

Vanguard’s Digital Index Chart shows how various asset classes have performed over the last 50 years. 

If someone invested $10,000 into the Australian share market 30 years ago, it could be worth $143,786 in 2025, despite multiple market swings along the way.1 If that same $10,000 was kept in cash, it would be worth $33,677 in 2025.2

We can also examine what would have happened if that same person waited five or 10 years to start investing in the share market. 

If they waited five years to invest the $10,000 in Australian shares — starting in 2000 rather than 1995 — the value of the investment in 2025 would fall to $73,694.3

If they waited 10 years and instead invested the $10,000 in Australian shares in June 2005, the value of the investment in 2025 would be $46,952.4

These examples show that starting to invest earlier can lead to much improved results.

While these past performance examples can offer valuable insights, it is important to note they are provided for illustrative purposes only. They’re based on specific factors and aren’t meant to predict how any financial product might perform in the future. 

So, while they can help paint a picture, they shouldn’t be taken as a forecast or relied on as a guarantee of what’s to come.

Confidence grows with experience

One of the biggest misconceptions about investing is that you need to feel confident before you begin. 

In reality, confidence is something that grows with experience. Many successful investors didn’t begin their journey with deep knowledge or certainty. They started small, made mistakes, learned from them, and gradually built both skill and confidence over time. 

Consider the example of Warren Buffett, perhaps the world’s most famous investor, who made his first investment at age 11. 

One approach that can help is to adopt a “growth mindset”: the belief that a person’s abilities and understanding (in this case as they relate to investing) can be developed through effort, learning and persistence. 

This can help shift the focus from “getting it right” to “getting started.”  Importantly, learning by doing can be an effective way to build confidence. 

The earlier investors begin, even with small amounts, the more time they have to learn and develop their investment skills and understanding.

Important notes:

Past performance information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.

1 Source: Vanguard Digital Index Chart. Investment of $10,000 into Australian shares on 1 July 1995 would have been worth $143,786 on 30 June 2025. Based on S&P/ASX All Ordinaries Total Return Index performance, assuming no acquisition costs, fees or taxes, with all distributions reinvested. 

2 Source: Vanguard Digital Index Chart. Investment of $10,000 into cash on 1 July 1995 would have been worth $33,677 on 30 June 2025. Based on the Bloomberg AusBond Bank Bill Index.

3 Source: Vanguard Digital Index Chart. Investment of $10,000 into Australian shares on 1 July 2000 would have been worth $73,694 on 30 June 2025. Based on S&P/ASX All Ordinaries Total Return Index performance, assuming no acquisition costs, fees or taxes, with all distributions reinvested. 

4 Source: Vanguard Digital Index Chart. Investment of $10,000 into Australian shares on 1 July 2005 would have been worth $46,952 on 30 June 2025. Based on S&P/ASX All Ordinaries Total Return Index performance, assuming no acquisition costs, fees or taxes, with all distributions reinvested. 

This article has been reprinted with the permission of Vanguard Investments Australia Ltd. Copyright Smart Investing™

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We have not taken your or your clients' objectives, financial situation or needs into account when preparing our website content so it may not be applicable to the particular situation you are considering. You should consider your objectives, financial situation or needs, and the disclosure documents for the product before making any investment decision. Before you make any financial decision regarding the product, you should seek professional advice from a suitably qualified adviser. A copy of the Target Market Determinations (TMD) for Vanguard's financial products can be obtained on our website free of charge, which includes a description of who the financial product is appropriate for. You should refer to the TMD of the product before making any investment decisions. You can access our Investor Directed Portfolio Service (IDPS) Guide, Product Disclosure Statements (PDS), Prospectus and TMD at vanguard.com.au and Vanguard Super SaveSmart and TMD at vanguard.com.au/super or by calling 1300 655 101. Past performance information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. This website was prepared in good faith and we accept no liability for any errors or omissions.
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