Doing nothing with your money could cost you more than you think
This article explores why inaction is risky and how starting small, early, and with a plan can set you on the path to financial freedom. Not doing anything with your money can be an expensive mistake. When your money just sits in a current or savings account, it doesn’t grow fast enough to beat inflation. Inflation is like a slow leak in your wallet.
Published on 8 January 2026
·
4 min read
What happens when you do nothing with your money?
1. Missed opportunities
One of the biggest risks of doing nothing is missing out on growth. With compounding, the earlier you start, the more opportunity your money has to grow.
Here’s a simple example:
Meet Mrs A and Mr B.
Mrs A starts investing ₹5,000 per month at the age of 25. She stops these monthly contributions at 35 – after just 10 years – having invested a total of ₹6 lakhs and keeps the money invested until 55.
Mr B starts later, at the age of 35, and invests the same ₹5,000 per month until he is 55. That’s 20 years of investing, totaling ₹12 lakh – twice as much as Mrs. A.
Assuming a 12% annual return, here’s what they each have at age 55:
Despite investing a smaller amount and making contributions for fewer years, Mrs A ends up with more. That’s because she started earlier and her money had more time to multiply.
This illustration assumes a consistent annual return of 12% and is for educational purposes only. This is not a prediction or guarantee of future performance and actual returns may vary.
2. Procrastination cost
Time is literally money when it comes to investing. The longer you wait, the harder it becomes to reach your goals. If you don’t start building up your retirement fund early, you will have to invest more later to reach the same goal.
3. Inflation impact
Inflation reduces the purchasing power of your money. If it sits in a low-interest savings account, it may not keep up with inflation and could lose value over time.
4. Overspending
When there’s no budget in place for saving and investing, spending can creep up unnoticed. If you’re not investing with intent, that money often gets used for things you don’t need, limiting your future choices.
5. Not having a plan
When you don’t have a clear plan for your money, it’s easy to feel lost and confused. You may save without knowing why, spend without thinking and worry without reason. A plan gives your money direction, purpose and discipline. When it comes to investment planning, it is advisable to plan early and seek professional guidance from a Securities and Exchange Board of India (SEBI)-Registered Investment Adviser (RIA) who works in your interest.
One of the biggest risks of doing nothing is missing out on growth. With compounding, the earlier you start, the more opportunity your money has to grow.
Here’s a simple example:
Meet Mrs A and Mr B.
Mrs A starts investing ₹5,000 per month at the age of 25. She stops these monthly contributions at 35 – after just 10 years – having invested a total of ₹6 lakhs and keeps the money invested until 55.
Mr B starts later, at the age of 35, and invests the same ₹5,000 per month until he is 55. That’s 20 years of investing, totaling ₹12 lakh – twice as much as Mrs. A.
Assuming a 12% annual return, here’s what they each have at age 55:
- Mrs A: ₹1.07 Cr
- Mr B: ₹45.56 lakhs
Despite investing a smaller amount and making contributions for fewer years, Mrs A ends up with more. That’s because she started earlier and her money had more time to multiply.
This illustration assumes a consistent annual return of 12% and is for educational purposes only. This is not a prediction or guarantee of future performance and actual returns may vary.
2. Procrastination cost
Time is literally money when it comes to investing. The longer you wait, the harder it becomes to reach your goals. If you don’t start building up your retirement fund early, you will have to invest more later to reach the same goal.
3. Inflation impact
Inflation reduces the purchasing power of your money. If it sits in a low-interest savings account, it may not keep up with inflation and could lose value over time.
4. Overspending
When there’s no budget in place for saving and investing, spending can creep up unnoticed. If you’re not investing with intent, that money often gets used for things you don’t need, limiting your future choices.
5. Not having a plan
When you don’t have a clear plan for your money, it’s easy to feel lost and confused. You may save without knowing why, spend without thinking and worry without reason. A plan gives your money direction, purpose and discipline. When it comes to investment planning, it is advisable to plan early and seek professional guidance from a Securities and Exchange Board of India (SEBI)-Registered Investment Adviser (RIA) who works in your interest.
How can you take control through investing?
1. Start early and start small
The earlier you begin, the more time your money has to grow. Even small amounts can make a big difference over time. Setting up a Systematic Investment Plan (SIP), for example, helps turn investing into a consistent habit, laying the foundation for building long-term wealth.
2. Know your risk profile
Understanding how much risk you’re comfortable with is key. Are you cautious, balanced or growth-oriented? Your risk profile should guide the way you invest, helping you stay comfortable through market ups and downs.
3. Define your financial goals
Set clear goals such as “₹20 lakhs for my child’s education in 10 years”, “a house in the next five years” or “a retirement fund by age 50”. These give your plan direction and purpose.
4. Build a diversified portfolio
Avoid putting all your money in one place. A smart mix of equity (for growth), debt (for stability) and gold or other alternatives (for balance) helps manage risk and supports different goals. This is called asset allocation and can help keep your portfolio resilient across market cycles.
5. Keep learning
Finance doesn’t have to be overwhelming. Spend a little time learning the basics the more you learn, the more confident you’ll become in your decisions.
6. Review and rebalance regularly
Your investment objectives and risk tolerance can change over time, and so your investment plan should, too. Review your portfolio at least once a year and rebalance if needed. This ensures you’re still aligned with your investment objectives and aren’t taking on more (or less) risk than intended.
7. Seek personalised advice
If you are unsure where to start or how to bring all these elements together, a SEBI-Registered Investment Adviser can help. RIAs are fiduciaries, which means they’re legally bound to act in your best interest. They can help you create a personalised portfolio, select suitable investments, monitor your portfolio daily and rebalancing over time.
The earlier you begin, the more time your money has to grow. Even small amounts can make a big difference over time. Setting up a Systematic Investment Plan (SIP), for example, helps turn investing into a consistent habit, laying the foundation for building long-term wealth.
2. Know your risk profile
Understanding how much risk you’re comfortable with is key. Are you cautious, balanced or growth-oriented? Your risk profile should guide the way you invest, helping you stay comfortable through market ups and downs.
3. Define your financial goals
Set clear goals such as “₹20 lakhs for my child’s education in 10 years”, “a house in the next five years” or “a retirement fund by age 50”. These give your plan direction and purpose.
4. Build a diversified portfolio
Avoid putting all your money in one place. A smart mix of equity (for growth), debt (for stability) and gold or other alternatives (for balance) helps manage risk and supports different goals. This is called asset allocation and can help keep your portfolio resilient across market cycles.
5. Keep learning
Finance doesn’t have to be overwhelming. Spend a little time learning the basics the more you learn, the more confident you’ll become in your decisions.
6. Review and rebalance regularly
Your investment objectives and risk tolerance can change over time, and so your investment plan should, too. Review your portfolio at least once a year and rebalance if needed. This ensures you’re still aligned with your investment objectives and aren’t taking on more (or less) risk than intended.
7. Seek personalised advice
If you are unsure where to start or how to bring all these elements together, a SEBI-Registered Investment Adviser can help. RIAs are fiduciaries, which means they’re legally bound to act in your best interest. They can help you create a personalised portfolio, select suitable investments, monitor your portfolio daily and rebalancing over time.
Bottom line: Doing nothing is a costly choice
Waiting to start investing could cost you more than you expect. Starting small today is better than waiting to make a big plan for tomorrow. Take the first step now, be consistent and learn as you grow.
Disclaimer: This article is for educational purposes only.
Questions you might have
Blogs
We want everyone to feel confident about investing and our learning hub is a good place to start – wherever you are on your journey.
