The Golden Rules for Saving & Investing
Updated: Sep 5, 2022
Are you ready to start saving regularly or do you have a lump sum to put away? That’s only just the first step. There are a couple of golden rules when it comes to saving or investing your money whether for the long or short term. They are simple to follow but will help make sure that your money works hard for you.
1. Set Goals
This is probably the single most important thing to do when you start your saving or investing journey. In particular, think in terms of time – is it a short or long-term goal that you are looking to achieve? Also consider how long you are happy to be putting money away for.
Don’t put all your eggs in one basket. It’s simple. Spread your contributions across different types of asset classes and asset managers. This can be done by selecting a multi-asset fund. There is a wide choice of these type of funds on the market and they are developed to suit different risk profiles.
3. Start Early
The earlier you start the better, so make the decision and take action today. Even a small amount put away on a regular basis can build up into a significant sum in the longer term as well as allowing the opportunity for possible better returns.
4. Be Consistent
The markets may go up and down, that’s just the nature of them. You need to be consistent. Keep your goals and your strategy to the forefront of your mind and stick with it. There’s no point in dipping in and out as this will just dilute the overall impact.
Key to success, especially if you are slightly nervous at outset or indeed if the markets take a downturn, is communication. Get professional financial advice to help work through your investment choices and decisions. Then make sure you are in regular contact for updates on your plan and the market.
If you’re ready to get your money working for you but need a little help, just get in touch and we’ll be your guide.