Everything you need to know about Investing
If you’re considering ‘The best way to save your money for a rainy day’ then the likelihood is that you need financial guidance. If you live from month– to– month with your hard earned cash burning a hole in your pocket; then it’s time to save for the future. Or, begin a rainy day fund.However, saving is not second nature to most of us and often we need financial advice to determine whether saving or investing our money would be better suited to our financial circumstances.
First and foremost, you need to pay off any debt you have, before you become a savings guru.
It is always best to have a bit of money spare to cope with the unexpected. Whether you’re made redundant or you’re temporarily left without an income, it’s better to be prepared as we never know what’s around the corner. Having a pot of money in an accessible account will definitely help.
Investment could be for you. If you’re the opposite to your risk–averse friend or perhaps you have a specific future goal in mind, then investing could be the best option.
However, once you have committed to investment it’s important to prepare yourself for the unexpected. With investment you need to be prepared for a bumpy ride. The money you invested will have it’s good and bad periods and there is also the risk that you might well end up with less money than you first invested, or perhaps none of it at all!
One reason why people choose to invest their money is for a future retirement fund. You could perhaps invest your money to reach a long term goal i.e. a pension fund. Investing your money is usually to obtain a goal that is 5 years away or more
Although its harder to access, that might not be a bad thing. You will have committed to a financial plan in order to grow your money.
You have two options available when investing your money.
Fund and Shares
In a fund your money is combined with other investors, which could be invested in government bonds or corporate organisation shares. Either way each involves a level of risk, yet there is always the potential of a greater return on investment.
Helping you make a decision
In order to determine whether saving or investing your money is a more feasible for your financial circumstances, you need to talk to a financial advisor. Financial Foresight have trusted advisers that have your best interests at heart.
Contact us and book a free investment planning appointment today.
