The power of having a long-term financial plan
What is long-term investing?
Let’s start with what it’s not. Long-term investing isn’t about “gambling” your hard-earned money, “quick wins” or “get-rich-quick schemes” (we’re looking at you, crypto).
Long-term investing is about growing your money over many years – think 5, 10, 20, or more.
While there’s no guarantee of what the future holds, history has shown that stock markets consistently rise over long time periods. For example, in the largest stock market in the world, staying invested for over 10 years has resulted in positive returns 94% of the time (Source: BofA Global Research).
How does it work?
The key is something called compound growth. This means that when you earn money on your investments (also called “returns”), those returns stay invested and start earning even more returns. This snowball effect can grow your money much faster than just saving. Over time, your returns can actually make up a larger part of your portfolio than the money you added over time.
It's the effects of compound growth which create the effective “discounts” on your future purchases you see throughout the catalogue. That’s why long-term investing can help you reach your financial goals with less effort compared to just saving cash “under your mattress”.
In short, the longer you stay invested, the more your money works for you – making it easier to afford bigger, more exciting things in the future.
Start with a plan
Saving money can feel hard, especially if you don’t have a clear goal. We’re naturally wired to focus on what we want right now – not what we’ll need later (like skipping the gym in winter because it doesn’t feel urgent).
But imagining and defining really specific goals for the future – like the ones in this catalogue – can help. Especially if they really excite you. They connect your actions today (like saving and investing) to the future you want to create.
The best way for everyone to get started is to have a financial plan.
Think of your future goals as your destination. To get there, you first need to figure out where you are now and plan the best route forward.
You can create a plan on your own, or you can work 1-on-1 with an expert, like the team at Octopus Money. They’ll help you define your future goals, map out a timeline, and build an action plan. Whether that includes investing or other steps to improve your finances, it can be a big help to have an expert in your corner to know you’re on the right track.
Work with an expert on the roadmap to your 2044 dreams. Get 50% off a financial plan with Octopus Money when you book your first session for December. Terms apply.
