Investing- Why start young?

Hmm, my very first post in my very first personal blog....

I'm 25, started working for about six months, have received 5 monthly paychecks (about RM4k+ monthly).

I'm into share market, I'd described myself sorta mix value/growth investor, also leaning towards dividend play. I'm not into short term or day trading, will hold stocks for long term. Still a newbie, continuously learning along the way.

When I asked my friends of my age group about investing, most of them have never thought of it. Those who save would tuck their money in saving or fix deposit accounts. Some of them choose to take car loan for brand new cars or spending on credit cards, ending up in net debt.

Why start investing early? It has got to do with the magic of compounding interest. Here comes my story telling time~~~~~~~~~~~

In year 2010, Ah Lan and Ah Ciao are both 25 years old, earning the same salary.

Ah Lan started investing RM10k a year in 2010 for 10 years in an investment which yields 5% a year. Then Ah Lan stopped adding additional money and he just left all the money in the same investment vehicle.

Ah Ciao started 10 years later in 2020, invested RM10k a year for 15 years (5 years extra compared to Ah Lan) which yields the same 5% a year. Then Ah Ciao stopped adding additional money and he just left all the money in the same investment vehicle.

Ah Lan put aside RM100,000 in the investment, whereas Ah Ciao put aside RM150,000. Lets see how both of them fare in year 2050:

In end of 2050, Ah Lan will have accumulated approx RM774k

Ah Ciao will have accumulated approx RM663k (RM111k less), despite saving RM50k more.

So who do u wanna be, Lan or Ciao?