There are many reasons why you should start investing. Investing early can pay big dividends, but it’s never too late to start!
And just in case you are sitting there thinking ‘I don’t need to invest my money’, here are five of the best reasons why you SHOULD start investing and make your money work harder for you.
1.Investing Makes Your Money Work for You
To earn more income, there are two ways to make money. Either you work for your money, or your money works for you. Instead of keeping it in a bank account offering minimal interest rates, you could watch it grow by investing wisely.
Investingdoesn’t typically bring large returns overnight, but if you are prepared toplay the long game, there are rewards in store. It is better than your moneydecreasing in value over time, or worse still – being spent.
2.Invest to Beat inflation
Itis an economic inevitability that the money you made yesterday will buy youless tomorrow, due to inflation. For that reason, it is essential that you makeyour money grow, and save it from being devoured by rising inflation.
3.Plant a Seed and Let It Grow
Smartpeople use their capital (however small) as a solid foundation to earn moremoney. You can do the same by investingand use your money as a tool to build wealth, rather than simply earn it andthen spend it. The power of compounding on that small starting amount can beincredible.
4. Plan Your Retirement
Retirementis a time to enjoy the fruits of your hard work not scrimping and saving, andit starts with investing now. For thisreason, it is wise to allow your money to grow, so that when you retire, youhave a satisfactory pot of money with which to enjoy your later years.
5.Tax Benefits Are Reasons to Invest Too!
Thereare plenty of ways which you can invest and tap into tax benefits at the sametime.
Takestocks & shares ISAs and cash ISAs for example are tax efficient, whichmeans you can enjoy healthier returns than from an ordinary investment account. Pensions offer you tax relief on yourpayments as well as a tax efficient wrapper for your investment.
Don’t rush into anything but remember that the “best time to plant a tree was 20 years ago, but the second best time to plant a tree is now”, and that mantra is also true for investing.
If you would like to learn more then drop me a message and let’s have a chat.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested. HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circ*mstances and changes which cannot be foreseen.
