Hi ,
You're doing everything right. So why doesn't it feel that
way?
You know ALL of the money hacks. You save regularly. You've built a decent pot. The number in your account is bigger than it was last year.
So why does it sometimes feel like you're running on a treadmill?
One word: inflation.
Here's the bit most banks don't highlight
Say you have £10,000 in an easy-access savings account earning 3% interest. Over a year, that earns you around £10,300
But if inflation is running at 3.5%, everything you buy costs more than it
did 12 months ago. Which means your £10,000 doesn't stretch as far as it used to.
Your balance went up. Your buying power went down. In the ways that actually matter, you have less.
This isn't scaremongering. It's just maths.
There's a difference between money that's safe and money that's growing.
For too long, savers have been told those are the same thing.
They're not.
If your money has been sitting in savings for years with no plans attached to it, it could be working harder. Not all of it- you absolutely
need that safety net. But some of it? Almost certainly yes.
The good news
If you've built the habit of saving consistently, you already have the hardest thing. Discipline. Patience. The ability to leave money alone.
Those are exactly the qualities that make a good investor.
In the next few weeks, we will be launching our brand new MoneyMagpie Investment courses, which will take you from savvy saver to confident investor.
If you know that your money could be working harder, but you're not sure where to start, this is for you!
