Investing may seem like a very complicated and daunting thing to get into for those with little to no experience. However, it is actually much simpler than you might think. You don’t need to be the next Warren Buffet to be a successful investor. You have to start somewhere.
People invest for various different reasons and it is always based on individual goals and circumstances, but here are 3 key reasons to start investing today.
Reduce the Impact of Inflation
As inflation rises, the value of your money will decrease over time. If you leave your money sit in the bank or credit union with little to no growth, your savings will inevitably be worth less in the long run.
Investing allows you to at the very least, keep the value of your money up with inflation. However, the goal of investing should be to beat inflation by getting a return on what you have invested which will depend on your investment strategy, attitude to risk etc.
Much Better Potential for Returns
The interest rates that banks and credit unions offer are nowhere near what can be achieved through investing. As mentioned, leaving your money sit in your current account in the current interest rate environment will reduce the value of those savings over time.
If you can afford to do so, investing a lump sum from your savings may be the best route for maximum returns. The more savings you have on deposit, the more reason for you to invest that money elsewhere. However, you don’t need to be rich to invest. You can start a regular saving and investment plan which is a much better saving alternative to a bank or credit union. You can invest as little as €75 per month and adapt the plan as your circumstances change.
Secure Your Financial Future
Many people have different versions of financial freedom in their head. For many, it means achieving financial health and wellness and essentially reaching a point where they don’t have to worry about money anymore.
Whether your goal is to own your dream summer home, retire early, leave a large inheritance for your children, or all of the above, investing is a proven way to do so. The earlier you start, the greater potential your money has of achieving maximum growth. It isn’t so much about timing the market, it is more about time in the market.
If you’re interested in investing but could use some expert guidance, talk to us to discuss your options. As a financial broker, we have access to all the best investment products available. We can create a bespoke investment solution tailored to your goals and circumstances. Call 025-30588 or book a complimentary chat to get started.
Here are some blog posts and videos to help you learn more about investing:
- Should you Invest or Not? (Video)
- Investment Assets Explained (Video)
- The Benefits of Long-term investing (Blog)
- Lump Sum Investing Vs Regular Investing (Video)
- Investment Risk Profiling (Blog)
Tracy Sumstad is a highly qualified and experienced Senior Financial Consultant with over 20 years of expertise in the Finance Sector. Tracy is well-equipped to provide comprehensive advice on financial planning and corporate solutions. Her focus lies in helping clients identify their unique values and goals, empowering them to make informed financial decisions that protect and enhance their wealth and success.
