Why Should You Invest?

“Investing can bring you many benefits, such as helping to give you more financial independence. As savings held in cash will tend to lose value because inflation reduces their buying power over time, investing can help to protect the value of your money as the cost of living rises.”

However, benefits of investing are most likely to be seen over the long term, so it is advisable to make sure your finances are in order before you start.

Firstly, consider clearing any debt before investing
Ideally prioritise paying off higher rate debts first and all other loans before making any investments (except pension investments). If you do have loans, organise your payments to avoid missing due dates which can incur unnecessary charges and damage your credit rating.

Secondly, Keep a Rainy-Day Fund
At Holland Hahn & Wills we ensure our clients have an emergency cash fund to cover unexpected eventualities such as redundancy, poor health or a hole in the roof. This can provide peace of mind and minimises the chance of having to sell investments when markets are down.

Thirdly, Contribute to your Pension
Regular pension contributions from an early age can make a substantial difference to your retirement fund. Although retirement may seem a while away, there are tax benefits to paying into a workplace pension which is arranged by your employer. Granted, you won’t be able to access this money until you reach retirement age.