The buying power of cash holdings will fall over time due to the effects of inflation. This constant upward trend in prices reduces the amount of goods and services that our money can buy each year. There is only one way to protect against the effects of inflation, that is to try and capture investment returns that are in excess of the rate of inflation.
Investing is for long term goals, saving is for short-term goals
Any holdings that are not required in the short term or to cover unexpected emergency expenditure should be utilised towards reaching your long term financial goals. This is achieved by investing in assets that produce a higher return. These higher risk investments (that offer the potential for higher returns) should be considered when planning to meet longer-term objectives, such as staying ahead of inflation or providing an income and/or lump sum in the future.
To find out more about how Proposito can help you beat inflation or improve your chances of achieving your financial goals call us on 01666 861194 or send us an email to email@example.com