Investment Tips And Tricks

Posted by Simon Moore on April 30
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Here are a few thoughts to help you along the way and make saving and investing easier.

Save Money You Aren't Used To Spending

It can be hard to cut your spending to support saving. However, if you receive a pay rise or some other cash windfall, such as a bonus at work, then it can be easier to save that money. That's because it's money you aren't used to spending. Therefore, if you add it to your saving account it can boost your savings and you won't miss it because it's not money your used to spending. So the next time you receive a pay increase or a bonus, see if you can remember to save it. You might be surprised at how it helps you over time.

Make Savings Changes Gradual

If you are looking to increase your savings rate then gradual changes can be best. For example, if you currently save 5% of your income but would like to save 10%, then consider making small changes every 6 months. For example, today you could move to 6%, and then in another 6 months move up to 7% and so on. In this way you'll get to your goal, perhaps a little slower than you otherwise would, but it will be easier to sustain as the change will be less abrupt.

Don't Look At Your Investments Too Often

Data on the market can be available every second of every day. However, looking at your investments too often isn't always helpful. It can cause you to consider changes when you don't need too, or just take up time that could be better spent doing other things.

If you can, check in on your investments every couple of months or less. The performance won't change, but you may find you make better investment decisions as a result.

Consider an ISA

An ISA can be an attractive offer to many investors. Though they may seem complicated, it may be worth taking the time to understand them because the tax benefits that they offer may help your money grow faster once taxes are considered.

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Written by Simon Moore

He was previously CIO of FutureAdvisor, a US digital advisor. His most recent book Digital Wealth, explains automated investing. He studied economics at Oxford, and completed his MBA at the Kellogg School of Management.

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