There is no denying that money plays such a huge part in life and it is often the cause of worry for families. When you have children you don’t just need enough money for your future but you also need enough to support your family’s future too. Many parents find themselves looking for money tips online and you will usually find two suggestions; saving and investing. Whilst almost everyone knows what savings are and how they work, investing isn’t as well known.
In short, investing is taking some of your money and trying to make it grow. You can do this in many different ways such as investing in stocks and shares or in a fund. For many families with young children, it may actually be more beneficial for you to start investing rather than saving in a traditional way. If you’re wondering how it can help you, keep reading today. Our team here at Financial Investing and Trading have explained why investing could be a better choice.
Investing can have higher returns than savings
Whilst there is a risk associated with investing and everyone should be aware of this, it can be a brilliant way to not only save money but actually grow this fund too. When you choose to invest, you have the potential to grow your money much faster than you could when saving. Of course, inflation can seriously affect the value of your cash savings over time too.
When you know how to invest your money, you will be aware of which investment options usually offer the highest returns. You can then weigh up other factors like time and risk to find an investment option that works well for your specific financial needs and requirements.
It isn’t as easy to take money out of an investment
Many people say that you should save for things just round the corner and invest for your future and this is a general rule of thumb for many reasons. One reason why saving doesn’t always work for families over a long period of time is because of how easy it is to take funds from this pot.
Often, when you have a savings account it can be very tempting to take from it as and when you like, especially when you see a large amount of money just sitting there. However, when investing, whilst you can convert an investment back into cash it isn’t always as straightforward as transferring from one account to another – making it much less tempting in general.
You might not need to contribute as much
Whilst savings accounts work well for some families, they don’t often offer interest rates that are high enough to match the interest you can earn when investments pay off. Due to this potential for higher interest, you may find that you don’t need to invest as much as you’d need to save to see the same return.
For this reason, investing can work well for families with young children who don’t necessarily have lots of disposable income to save with. When you know how to invest your money, you may find you don’t need to invest as much as you’d need to save to reach your overall goal.
Learning how to invest your money
Now that you know a little bit more about investing and why it could be a better choice for your family rather than traditional saving methods, you will see why it is definitely worth considering. Of course, if it is something you’re interested in, then there are many ways you can learn how to invest your money, such as online courses, and you can find a way of investing that works well for you and your family.
Here at Financial Investing and Trading, we specialise in helping families learn how to invest their money and you can visit our website today to find out more. It is our aim to help families create future financial security for themselves and their loved ones by investing. If you would like to find out more about how to invest your money and how we can help here at Financial Investing and Trading, get in touch today, we’re happy to discuss this further.