Cash advice

Investing may seem scary, but with low interest rates and inflation devaluing cash slowly, it may be time to build up your savings with these simple tips from the Financially Fabulous money team...

1 ANYONE CAN DO IT

You don’t need a lot of money to get started, nor do you need to be an expert. Some investment apps, such as Moneybox, even let you begin with just a few pennies, by rounding up your loose change every time you spend. The new roboinvestors (online tools) that do the work for you are far simpler than traditional methods and are perfect for beginners.

2 IT’S QUICK AND EASY

It only takes a few minutes to get started. You can go online and set up an Stock and Shares ISA, for example, in the time it takes to watch an episode of your favourite TV programme. All you’ll need are your bank account details, National Insurance number, and the time to answer a few questions about your attitude to risk.

3 IT’S NO LONGER A MAN’S WORLD

Fewer women than men currently invest. While 64 per cent of women understand that investing is important, at the end of the 2015/16 tax year, only 892,000 had a Stocks & Shares ISA, compared with more than 1.1 million men, according to HMRC. Yet research shows women’s investments actually perform better than men’s. Last year, the Warwick Business School found that over a three-year period, women outperformed men by 1.8 per cent on their investments.

4 IT’S NOT THAT GREATER A RISK

Investing comes with risk, but not the kind you see with gambling, for example. When you invest, your money is put to work in the stock market, which can go up or down. But, because you put your money away long-term, at least five years, it gives your investments time to recover and grow again if they drop. The bigger the risk you take, the higher the return potential, which can be as much as 8 per cent. Never leave yourself short though and keep some money in an easy access savings account.

5 FINALLY… TALK ABOUT IT!

Although finances can be difficult to discuss, it’s important to get that conversation going – with friends, family and experts. You shouldn’t be afraid to talk about money and it’s good to find a role model to motivate you.