Your parents always told you to put money aside for a rainy day, we have all been told this and it is good advice. Always having a money pot to dip into when you need a little help is a great idea, but putting it into a savings account that sometimes doesn’t allow your money to grow is not a good idea. If the inflation rate is higher than the interest rate that you are getting on your savings account, then your money is losing value every day. Saving is a completely different concept from that of investing and although it does provide you with your initial first money to invest, you need to start looking at other ways that you can make your money grow quicker.
Investing for your future allows you to achieve all your personal goals and it offers three great benefits that we will look at now.
- Good Long Term Returns – When you save, you are building money for a rainy day that may come tomorrow, next week or next month. Investing means putting your money to work now so that it gives you much bigger returns over the long term. You may have to tie the money up for a number of years, but in the end you will have experienced real growth in your money. There are so many things to invest in like fixed interest opportunities, stocks, shares and property and all of these historically will generate good levels of return. There is some risk but if you do your homework and invest in shares that you have seen perform well over the past thirty years, then you can’t go wrong.
- Keeps You Ahead of Inflation – The key is to beat inflation and stay ahead of it and Max Funding and Max Funding reviews will all help in keeping you ahead of the market. You need to insure that your investments are giving you a much higher return than that of the current inflation rate and investment companies will help you with that. They have the experience and the know how to guide you along the path to great future wealth. Once you can stay ahead of inflation, then you are getting real returns on your money over the long term which offers great potential for capital growth.
- Earn Yourself Some Extra Income – If you make wise investment choices then you should be able to generate yourself some extra income along with the salary that you currently get in your job. This extra money can be used to treat yourself or to reinvest again with higher returns. Your investments can even create an income that will allow you to live day to day as your regular source of money. It just means that you need to invest in quality investments. It all depends on your desire to take risks and take the occasional chance on something good.
It’s never too early to start investing for your future. If you start now, it means that you won’t be scrambling later to build up a nest egg so that you can retire at 65. Do it now and maybe you can retire at 50.