Why should you invest your money at all?
Why do people invest their money at all? Why not just go out and buy new cars, the latest designer clothes, enjoy holidays abroad instead? Well, unless you are one of the very few and very lucky people who are extremely wealthy and know that your income stream will always continue, then you may want to read on.
There are very few of us who are in the position of having an infinite income stream, and so being able to manage your money and look after it is important to the majority of us. One of the best ways to look after your money is by investing in assets that provide you a healthy return (ideally a passive return that you do not need to continue to work for). This is how people who manage their money and grow their portfolio of assets are able to enjoy a better work-life balance, stop working completely, or enjoy a more opulent lifestyle. Building up assets that pay you a passive income, allows you to break the societal paradigm of exchanging your time for money through paid employment.
This is a goal of most people at one stage or another in their lives, whether that is at the point when their children are young, when they are mid-career or later on in life. The best things that you can do to escape paid employment, or to make the most of your capital, and to enjoy a more balanced lifestyle is to either a) start, build and autonomise a business, b) invest in assets that pay you a healthy return on your capital, and keep doing so until you reach the point where you achieve your personal goals, or c) win the lottery! The amount of passive income needed will be different for each and every one of you, and will depend on your lifestyle and your financial and lifestyle goals.
Most people work extremely hard for their money, and value it immensely, however it is surprising how easily some people let their money go after working so hard to secure it. This creates the catch twenty-two situation that they need to keep earning to sustain this cycle (lifestyle), which they will usually keep doing until something changes. Either they reach a point that they cannot continue (for whatever reason), or they re-evaluate their own situation.
The sooner you invest in assets, the sooner you will be able to make changes to align to your financial and lifestyle goals. This sounds simple, and it is, however it usually requires hard work, sacrifice and a lot of motivation. The end result is worth it for those fortunate enough to achieve the personal goals that they set themselves.
Everyone’s goals are different and it is important to recognise this – for some people their goal may be a dream car, for others it may be to create more financial security (e.g. knowing their bills are paid each month) and for many it is to retire early. So, no matter what your goals are, you can take action today which helps to move you closer to achieving your goals. This is why it is important not to have a one size fits all approach to your investments. No matter what asset you invest in, your strategy should be different depending on the goals you are working towards.
The great thing about investing in assets is that you can stop at the point that works for you, whether that is i) covering your outgoings, ii) creating financial security, or iii) securing financial freedom….and there is no limit to where you have to stop. This provides a flexible option that aligns to your goals, risk comfort, available capital or other commitments you may have.
We do not believe in get rich quick schemes, but we do want to help you to achieve your personal goals by investing in assets (property in our case) in a simple, easy to follow systematic way that delivers positive results for you.
Taking your first step into investing can be daunting, but at Switch, we are on hand to support you through the process – making investing easy and making it more accessible.
The important thing to remember is that you work hard for your money, and many hold their savings/money in Savings Accounts that are achieving 1% interest rate per annum. Inflation has been between 1.79% and 4.46% over the last 10 years in the UK. What does this mean? The value of your money is decreasing (in real terms).
Doing nothing is actually riskier than doing something (i.e. investing in property), and it is this reason why people invest, in order to break the cycle and ensure their hard earned savings are working for them. In turn this contributes towards achieving financial security, or them achieving their personal financial and lifestyle goals (making money without the hassle).
Check out our Case Studies page to see the financial rewards we have achieved by investing in property. If you would like to find out more about getting started in property investing, then contact us for a free, no obligation 20-minute consultation to see whether we can help you on your journey to achieving your financial and lifestyle goals.