For those new to investing, see it as a way to nurture your savings, to give what you have accumulated the best opportunity to go further.
YOUR “RAINY DAY FUND”
THE POWER OF ONE POUND
Whilst only a simple illustration, it highlights the potential of every pound and the importance of the principle of Compounding – which Albert Einstein is said to have described as the eighth wonder of the world.
Consider compounding a potential exponential multiplying force for every pound that you save. Whilst there can never be any guarantees, think of it as the ability to earn interest on your interest, or when it comes to investing – returns on your returns. Thus the longer you are able to invest for, the longer your savings will have to grow.
Over the course of a year the effects of compounding might only be slight, but over 30 years the difference becomes vast. Therefore investing regular amounts can be far more effective than saving one big lump sum and investing it in one fell swoop; with the latter, all those pounds you set aside on day one would miss a year’s worth of interest. The same principle applies for reinvesting any dividends or income you might receive from any investments.
A PERSONALISED INVESTMENT PLAN
