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.
Investing doesn’t typically bring large returns overnight, but if you are prepared to play the long game, there are rewards in store. It is better than your money decreasing in value over time, or worse still – being spent.
2. Invest to Beat inflation
It is an economic inevitability that the money you made yesterday will buy you less tomorrow, due to inflation. For that reason, it is essential that you make your money grow, and save it from being devoured by rising inflation.
3. Plant a Seed and Let It Grow
Smart people use their capital (however small) as a solid foundation to earn more money. You can do the same by investing and use your money as a tool to build wealth, rather than simply earn it and then spend it. The power of compounding on that small starting amount can be incredible.
4. Plan Your Retirement
Retirement is a time to enjoy the fruits of your hard work not scrimping and saving, and it starts with investing now. For this reason, it is wise to allow your money to grow, so that when you retire, you have a satisfactory pot of money with which to enjoy your later years.
5. Tax Benefits Are Reasons to Invest Too!
There are plenty of ways which you can invest and tap into tax benefits at the same time.
Take stocks & shares ISAs and cash ISAs for example are tax efficient, which means you can enjoy healthier returns than from an ordinary investment account. Pensions offer you tax relief on your payments 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 circumstances and changes which cannot be foreseen.