How Much Are You Losing?

Let's face it, with inflation and property prices on the increase, it is no surprise that people are looking for alternative ways to generate an income. A fundamental flaw with how we are chasing cash is people are looking in the wrong places.

Let's face it, with inflation and property prices on the increase, it is no surprise that people are looking for alternative ways to generate an income. A fundamental flaw with how we are chasing cash is people are looking in the wrong places. There are avenues open to you to make in excess of 30% on your savings per year, and that is looking at the lower end of the scale. Creating these returns takes less time than the average person spends a day on facebook , or checking emails. So the question is why aren't more people doing it?

Each month, when you set aside money to put into a "high interest" or ISA account, you consider it "savings", but what exactly are you saving it from? The reality is this; once the banks have your savings, they invest it into the financial markets. To keep you as a loyal customer, they give you 1% to 2% as an incentive to keep funding their investments. The fats is the reason people don't take the opportunity to invest into their own hands is ultimately down to a lack of knowledge.

Imagine a world where only 2% of the population understood the benefits of driving, and of that 2% only 5% were doing it successfully. The population as a whole understood how much an asset having a car would be but with such a minority holding the information on how to drive , the majority would happily continue to walk. Driving, a far superior means of getting around would barely be a ripple in their thoughts, brushed aside and deemed an unachievable goal. To add further confusion, people have heard horror stories of those getting into cars and crashing them, losing a lot of money. With the emphasis on the crashed car, it is inevitable to put doubt in the minds of the listener. As we know, driving a car is effortless once you have the right education and experience behind you.

I am sure you have heard a story of someone who has invested money with a less than satisfying outcome. What you should ask yourself is if you were in a similar conversation with well-educated, experienced investors by the likes of Warren Buffet, George Soros or John W. Henry, would you leave the conversation with the same mindset as you left when speaking to the uneducated gambler? The successful investor would explain how with the right knowledge and experience, generating substantial amounts of money can be as easy as driving a car. With your newly gained knowledge, a clear and prosperous path has been carved for you to seamlessly walk along.

Hindsight gives us the choice to learn from our experiences! In my years of experience as an investor, the topic of house prices always seems to come up. As we know, property prices have continued to increase massively over the years. Those who took advantage of cheap lending and low property price are now reaping the rewards, while the rest look back in regret. However, back then, the world of investments were for the more intuitive and business-savvy or those with substantial capital behind them.

With the advance of technology, it has become far easier for people now to spot and capitalise on opportunities in investment. Whether it is in real estate, currencies or commodities like Gold, wine and fine art, the future of our investments is far more transparent. Also with the internet boom, it has taken investment out of the 'pits' and into the living rooms of private investors. You don't have to call up a broker and have a long chat about transactions. All it consists of now is pressing a button or clicking a mouse as accounts are online and even as apps. The ease of investment has advanced significantly and it is being grasped more and more by private investors. It is inevitably the next big thing that people will be doing with their money. Once incorporated into your life, it will change your financial future.

The famous saying goes "an opportunity is only an opportunity if you choose to take it". Learn to take full advantage of theses opportunities in your grasp with the power of Investment at the top of your list!

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