We all lead busy lives and there are a few “classic” things we’re going to do once we’ve managed to find a little time. For example, we’re all going to learn to relax soon – maybe take up a little yoga and meditation and really learn to just “be”. We’re also going to start taking more regular exercise or to change our exercise regimen – and we’re going to get our house in order with one or two more changes – or maybe to trade up the property ladder.
These are the most common things we’re all planning to do but never seem to be able to get around to doing fully. And maybe they don’t matter too much if they’re a carrot on a stick that we never quite get to as long as we’re happy and healthy. But there’s one classic “to do soon” task that we really can’t afford to put off, ever; and that’s the one of getting our finances in order.
When you’re busy working all the time, looking after children and generally racing round, this one gets shoved continually to the bottom of the list. But it shouldn’t; the steady drip-drip effect of finances over the course of time means that every pound you don’t invest well today could cost you dear in the future. So, for example, if you look at that spare two pound coin in your purse today and you imagine investing it wisely instead of buying a Lottery ticket, for example. If you can make a ten per cent return on that two pounds over the next 20 years, then the “miracle” of compound interest will turn it into almost £13.50. Put another decade on and it’s nearly at £35. But let’s imagine that you could do even better and achieve a 15% return. The two respective figures are then almost £33 and over £132.
So the opportunity cost of not investing that £2 wisely today is absolutely enormous for your future self, whatever way you look at it. And whilst all this may seem a long way off – have a look at the 50 or 60-somethings of today and ask them if they wished they’d invested better earlier. You won’t be able to ask those who did because they’re busy jogging on the beach in Antigua! So don’t let anyone try to convince you you’re being boring.
The easiest and safest way to get started is to make an appointment with a reputable financial advisor and outline your position and long-term goals.
If, on the other hand, you want to try something a little more risky and self-invest, then be aware of the pitfalls and give some time to reading up on the subject first. Try to read objective information only on what’s been tried and tested and shown to have worked in the past. There are various trading platforms you can try for free in demo mode only. The Tradefair trading platform from Betfair, for example, trades over 3,000 different world markets and you can trial its demo account for up to 30 days (though you can also run a demo account alongside a real one to practice different trading strategies).
Whatever you decide – don’t let your future self down, because she may not forgive you too easily.