What exactly is investing?
You may hear the term “investing” thrown around every now and then, especially in the world of business and finance. But what exactly is it, and is it something anyone can get into?
The simple idea behind investing is to grow or increase your money over time. By putting your money away now, you hope to have more in the future. Investments can range from cash savings accounts to stocks and shares.
Investing works on the principle of using the power of compound growth. The interest, or investment growth, you earn each year is added to your original investment. The next year, you earn growth on your original money plus the growth from the previous year. This cycle continues.
The important thing to grasp is to know when you have your money in the right place. You can’t put all of your eggs in one basket. It’s always important to keep some money to cover any emergencies that may occur in the future. This is called an emergency fund. After all, investing is not guaranteed money. There is always a risk involved, so it’s about knowing what investments are worth pursuing, and how much to put into any given investment.
Here at Chilvester, we suggest keeping around 3 months’ worth of your salary in your savings at all times. That way, in the case of an emergency, you should have enough funds to continue to live until things are sorted and back to normal.
When it comes to investing, it’s important to know how much to invest. This will always come down to a couple of factors; how much money you have, and how much you can afford to invest. The two are very different from one another.
What exactly can you invest in though? There’s actually a wide area of investments available. For example, there are investment opportunities to be found in property, individual company shares, exchange traded investments and collective investment funds to name a few.
As previously mentioned, there is always a risk involved when it comes to investing. It all boils down to risk vs reward. You need to ask yourself how much money you can afford to invest, and weigh that up against how much money you can afford to lose. It’s not guaranteed that every investment will be a profitable one.
It is always recommended you talk to a professional when it comes to investing your money. At Chilvester, we’ll help you to build and investment strategy that is right for you. One that will put you on the best course to helping you achieve your goals and objectives.
We’ll never invest your money just to achieve the highest possible growth, and we’ll never make any empty promises as to the success of an investment. Nobody knows where the investment markets will be in the future, after all.
If you’re looking to get into the world of investing, but don’t know where to start, then why not get in touch with Chilvester Financial? Our team of professionals know the workings of investment inside out, and we’re here to help. Contact us today for your free consultation, and let us give you just the advice you need!