It has just been announced in The Sunday Times that the average easy access savings rate for our money has fallen to 0.19% – which is the lowest rate since the records began in 2007. Appalling.
Particularly when you consider that the rate at which the goods we buy is increasing by 0.3% (this is our current ‘inflation’ rate which in itself is incredibly low).
I like savings. They provide security for difficult times and allow us to feel less financially pressured but at some stage we need to get to grips with the concept of investing where we could, for instance, invest in property or shares. This year the global share market has risen by about 14% and the UK property market by about 6%. That’s quite a big difference to 0.195!
If anyone wants to make any difference to their overall money or wealth it’s important to understand that savings won’t do it – you just can’t live long enough to save a fortune, but investing will.
Investing doesn’t have to be active, it doesn’t have to be complicated and it doesn’t need to be big and investing can start with small monthly amounts. What is vital is that we learn the difference between savings and investments and start to get more or our money invested and growing faster for long term financial security and freedom.
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