Hunkering Down!

Politics! Well, to be fair, it’s not been great of late (being very polite!).

Uncertainty abounds and this usually generates some fear for the future, whether this is short term or further out.

New Prime Minister, votes of no confidence, general election, Brexit, deal or no-deal (and we're not talking about the game show!)…does it ever end? And many folks are simply hunkering down with their spending and holding onto their cash as they earn it just in case. Not an unreasonable thing to do, or to expect, but if you're going to save money for the 'rainy day' you may fear, where should you put it?

You can invest in cash/cash type holdings, which should have limited volatility in terms of changes to capital values. However, the returns are usually low, and inflation may erode the real value. These types of investment are usually favoured for the short term, and these might include deposit savings accounts, cash ISAs, and National Savings & Investments (NS&I) Premium Bonds, as examples. The latter two options have tax efficient benefits, and if you are hunkering down, then your savings should also be doing all they can.

More on NS&I Premium Bonds, as an example, can be found here:

Greater gains may be achieved by investing in stocks and share type arrangements, like a stocks and shares ISA; however, this usually introduces increased volatility and capital values can fall as well as rise and you would normally plan to invest for at least five years as a minimum.

Whatever you do, and we are all different, make sure your money is working as hard as you are. You might want to flop on the sofa after work, but that does not mean your money can!

Take a look at where your money is and what it's earning. If you need to look at your overall financial planning, have a look at soon.