The most effective aspect of wealth building is time, but it is frequently ignored so that an attempt is made to select an optimal investment or time the market. The key to investing in your financial future is just to know how time affects it.
An individual who invests 200 a month at the age of 25 will have a much higher amount at the age of 65 than an individual who invests 400 a month at the age of 40, given the same amount of returns. This is not magic, it is compound growth and it shows why it is better to start small than to start large.
The penalty of the late starter is very real, though not impossible. Unless you began investing at an early age, the answer is not to quit but to do as much as you can at this point of time. With increased contribution rates, tax-favored accounts, and regular behavior, it is still possible to accumulate a significant amount of wealth despite the reduced time frame.
Time also offers safeguard against volatility in the market. When you have several decades to live, swings of the short-term market are of little significance. That is the reason why younger investors are usually able to be more risky, they have time to come out of the down turns and enjoy the long run growth patterns.
The psychological gain of time is also of significance. Early savers teach themselves to save and invest and it comes as a natural thing and not a heavy burden. This advantage of behavior is multiplied like money, making it an effective wealth-building attitude.