5 Things To Know Before You Start Investing
When you are looking to start investing, there are some key things you should keep in mind.
1. The Importance of goals
Your starting point when investing should be setting a goal. What is it you are hoping to achieve with your investment? How much will you need to put in, and for how long?
By naming your goal, you are creating a focus point. This will give you the motivation to keep track of your performance over time.
2. Investing is a long-term process
You need to keep in mind with investing that it is a long-term process. By having your money invested for a longer period of time, you are more likely to ride out any fluctuations in the market.
Popular savings goals include retirement or school fees, meaning that time tends to be on your side when investing for the long term.
3. The need to diversify
The advantage of long term investing is that it helps you navigate market volatility. Investments can go down, but a long term strategy and diversified portfolio could help you to deal with these periods.
We have developed an Advanced Diversification approach, using a blend of tried and tested multi-asset investment strategies that find opportunities for growth. Think of this as not putting all your eggs in one basket.
4. The importance of tracking
Tracking your investment is the best way to ensure you achieve your goal. The True Potential app allows you to track yout investment, and with impulsesave you can top up at anytime.
5. Closing the Savings Gap
By investing, you are closing the Savings Gap. Our research has shown that only a minority of savers will have enough funds for a comfortable retirement, by their own definition.
Investing could be an effective way to close any potential Savings Gap, and you can use this as motivation to keep investing over the long term towards your goal.