The best time to begin to invest was yesterday. The second best time is today.

After much research and deliberation, I decided a few years ago to begin investing in index funds. If you're unaware, index funds are where you purchase the top (say 500 or so) companies of a market, on the basis that the market, over time, always grows. In my case, I have invested in Japan (TYO:1348), and to hedge my bets, also the world excluding Japan (TYO:1550).

However, to truly gain from this method, it's imperative to make multiple purchases throughout the year, say 10,000yen a month, rather than 120,000 yen in January. This gives you the best average price overall, while also meaning any interest received can be further reinvested, meaning the 8th wonder of the world, recurring interest, can really make a difference.

Back in early 2016, the stock markets fell and I was in the negative for a very long time. This scared me off making regular purchases and I didn't trust the system. However I later painfully realised that this fear meant I missed out completely on purchasing stocks at a lower price than normal, and I vowed not to make the same mistake twice.

Last year the stock market recovered somewhat and hit historic highs, meaning I was on the up and up, however it took a dramatic dive towards the end of the year which has put me into negatives again. This time, though, I take solace in the fact that the stocks are having a sale, and I can get more bang for my buck.

Further reading:

A Random Walk Down Wall Street specifies quite logically the theory behind investing in index funds, which was even recommended by Warren Buffet to his wife if he were ever to pass away.