Why you should consider investing over saving…

Did you know that investing is a great way to grow your money? In our latest blog, we highlight the benefits of investing your money over putting it into a savings account.

Grow your money

Although your money may be more secure in a bank or building society, it has limited room to grow as your funds are not exposed to market volatility. By investing your money, you are giving it the chance to increase in value. Generally, you may find that your chances of achieving market growth are better the longer you leave your money invested. Therefore, having a long-term investment plan can help you worry less about any short-term market fluctuations. Additionally, if you buy your investments when markets are low, you may benefit from a reduced price, giving you more chance to benefit when they increase in value.

You may also achieve additional benefits through compound growth – which basically means the longer you keep your money invested, the more likely it is to grow. Although this may not make a significant impact to your money in the short term, the effects can be significant in the longer term.

It’s important to consider the risks associated with investing your money and the possibility of receiving less than you paid in. Speak to an expert to discuss your options and ensure you are making the right choices to help you achieve more from your money.

Generate an income

You will find that many investments can be ‘income-generating’ for example, companies will often give out a proportion of earnings (dividends) each year to shareholders, bonds can earn regular interest payments, and any property which is rented out can receive income. Investments such as this can be an excellent way to generate another stream of income.

Many people are also investing their pension savings once they have retired and using the money as income to live on. Ideally, your pensions should support you for the rest of your life – you don’t want to run out of money! As such, it is always best to ask for advice to ensure your pension savings are working hard to support your goals. Read more about boosting your pension savings here.

Avoid the impact of inflation

If you are going to leave your money untouched for a longer period, then you may think about investing to help limit the effects of inflation. To avoid your cash savings losing value, particularly now that interest rates are low due to the coronavirus pandemic, you may want to invest your money to help preserve it.

Get in touch

PM+M can help you proactively manage your investments. If you would like to discuss investing, and achieving more from your money, contact our financial planning team (financialplanning@pmm.co.uk) who will happily arrange a meeting at no cost.

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