What “time horizon” means
Your time horizon is simply how long your money can stay invested before you need it.
Money with a long time horizon can ride through ups and downs. Money with a short time horizon usually can’t.
Why time matters more than timing
Many people worry about picking the perfect moment to invest. In practice, staying invested over time often matters far more than starting at exactly the right moment.
Consistency tends to beat precision.
What compounding actually is
Compounding means earning returns not only on your contributions, but also on past growth.
Early on, progress can feel slow. Over longer periods, the same steady behaviour can produce much larger results.
Small, steady contributions add up
Many families assume they need large lump sums for compounding to “work.”
In reality, regular monthly contributions often matter more than the size of any single deposit.
Compounding is not linear
Growth doesn’t increase by the same dollar amount every year. It accelerates over time — which is why patience is so important.
This also explains why short-term results can feel underwhelming at first.
How this shows up in FinForFam tools
Tools like the RRSP Growth Starter and TFSA Growth Helper are designed to show how time and consistency interact.
Try extending the timeline rather than increasing the contribution to see which has the bigger impact.
Want to see compounding in action?
Explore this with a simple tool
Test how time horizon and monthly contributions change long-term outcomes using our growth tools.
Try the TFSA Growth Helper →