Most of us at some point have saved up for something.
And a savings account is a great way to reach your goal.
But if you have a goal for the longer term, you could consider investing your money instead.
An investment is something you buy with the hope that it will gain value or provide an income in the years to come.
For example, to help provide a nest-egg for your retirement or help support your children in the future.
With investments, you’ll need to be prepared to tuck your money away for longer– five years or more ideally.
But they could outperform the interest rate you’d typically get from most savings accounts, so your money works harder.
But, there’s always the risk their value can fall too, and you get back less than you originally invested.
To give your investments a better chance of flourishing it’s important you’re prepared to invest for the long term.
But make sure you have enough savings put aside for those rainy day emergencies that may pop up as well.
It’s also worth remembering that you don’t have to have a big lump sum to invest.
You can invest with bite size amounts over a longer period of time.
But bear in mind, some charges will be taken from your investment – and these will vary – so be sure to take time to understand these.
Then, once you’re more familiar with the world of investing it could be worth a go – to get your money working harder.
And help you reach those longer term goals.