What is investing?

Strip out all the jargon and investing is a relatively simple concept. You essentially buy something you believe can be sold for more in the future.

Everyone has at least one goal in life that requires more money than they currently have access to.

With a little patience, investing could reward us with a better chance of fulfilling our financial goals than squirrelling away everything in a savings account.

Investing does come with the risk of losing money.

Pros and cons of investing

If you’re able to save some of your earnings each month, or have a nice lump sum tucked away that you won’t need to spend in the foreseeable future, investing could be an option. Inflation, the rate at which prices rise, usually outpaces returns on savings accounts, so any money stashed away there is likely to lose value in real terms over the years.

How to start investing

You’ve likely seen the stories about bitcoin millionaires, or maybe you've gotten a tip from a friend or been approached about a way to ‘get rich quick,’ but it’s important to remember that investment scams are common. As is often the case in life, if an investment seems too good to be true, it probably is.

Instead, sit down, put the kettle on and ask yourself some basic questions. Start by contemplating how much money you’re comfortable to tie up in investments over, say, five to 10 years. Then pick a strategy you like that matches your expectations and the amount of risk you’re willing to stomach. Be realistic and remember: the bigger the potential reward, the greater the possibility of losing some of your hard-earned cash .

Financial advisers can help you to answer these questions and identify the most suitable investments. Alternatively, you might prefer to go solo and choose a stocks and shares ISA platform: tax-free online shops for buying and managing investments.

Investing for beginners: What to choose?

Rather than investing in one or two individual companies or bonds, it could choose to to invest in a fund. Funds allow you to outsource the arduous task of crafting and nurturing an assortment of suitable investments to an expert and can reduce the risk of one poor performer bringing down your whole portfolio.

WARNING: We cannot tell you if any form of investing is right for you. Depending on your choice of investment your capital can be at risk and you may get back less than originally paid in

At Patrick Wayne Wealth we provide you with a diversified investment portfolio which means that you would be investing in cash, properties, bonds and equities all at once. Our investment portfolio changes depending on the level of risk you are willing to take.

It’s worth mentioning that the value of your assets can fall as well as rise.