If, like a large proportion of the population, you have a tendency to squirrel away savings in secure cash deposits rather than opt for a higher earning alternative, then you could be one of the many households that collectively lose billions in returns over the course of a year.
Research by website Steps to Investing undertaken in 2018 suggested that savers who put aside the recommended three months’ worth of household income as a financial safety net would be better off investing any surplus income in shares.
Of course, every situation is unique, and whilst investing in shares may be the right strategy for some, there may be alternatives that are more appropriate for others. The key advice will always be to take financial advice from an independent financial planner. They will take a close look at your individual circumstances and wishes for the future and, from an unbiased perspective, make recommendations based on your objectives and your attitude to risk.
There are various ways in which you can better make your money work for you. Here we are focusing on some of the most straightforward, common-sense strategies that will stand you in good stead generally. There will of course be some financial planning tactics that are more complex but, as we say, it is best to let an expert take the reins with those so that you can be sure you are making informed decisions that fit your needs.
1. Keep some cash for a rainy day
It is recommended that you have three months’ worth of household income to hand as readily available cash in case of emergencies. That means cash that you can access immediately and without penalty.
Whether there is a home crisis that needs rectifying, or there is an unexpected change in financial circumstances, it really does pay to have a cash reserve to hand.
2. Consider your attitude to risk
Something that any good financial planner will discuss with you before considering any form of investment or savings plan, and helping make your money work for you, is your attitude to risk. It therefore pays to be at least partly ready for the conversation.
Most people will be uncomfortable with the thought of losing money. But sometimes, it does not pay to be overly cautious. Often, it is worth considering spreading money across a variety of investment and savings vehicles. This is something that an independent financial planner will talk you through.
3. Invest little and often
It is often advisable, at least when starting out with an investment plan, to begin with a regular, affordable monthly contribution rather than make a single lump sum investment.
A long term plan, commenced at a young page, even at a modest rate, could see a savings pot growing steadily over the years, without hurting too much.
4. Take care when choosing a financial adviser
When investing for the future, or for a specific aim, it is vital that the investment choices you make are strategic ones that have the best possible chance of delivering what you need, when you need it.
You should be looking for a financial planner with a good level of experience and trusted recommendations, preferably a chartered financial planner. Chartered financial planners are considered the gold standard in the industry. Having completed a number of examinations in various aspects of financial services, and demonstrated the highest commitment to professional services, they will be best placed to reassure you that the advice you are receiving is in your best interests, and also to save you money.
Remember that an independent financial adviser will have access to the whole of the market when it comes to investment and savings products, rather than being tied in to products from a single provider or a panel, which of course is in your best interests.
How to make your money work for you with help from the experts at Partridge Muir & Warren
At Partridge Muir & Warren, we have been providing professional financial planning and investment management services Surrey wide since 1969. As chartered financial we offer exceptional peace of mind for our clients.
We offer a comprehensive financial planning service, courtesy of our own in-house team of chartered financial advisers, investment administrators, tax advisers and legal specialists, all dedicated to protecting your wealth, and helping you reach your all-important financial goals.
If you would like to discover how our financial planning service could help make your money work for you, you are welcome to get in touch.