With UK inflation recently breaching the 2% mark, and no signs of it letting up in the near future, the value of money at the bank is set to diminish. This is compounded by the fact that many people have built up sizeable bank balances during lockdown, with fewer opportunities to spend money on things like eating out, socialising or going overseas.
While it’s sensible to maintain some cash for expenses and unforeseen circumstances, it’s worth reviewing your bank balances to see if you can put any extra cash to work in the market through an ISA, GIA or your pension. This should help you to reach your financial goals sooner, while the higher expected returns from investing can prevent inflation eroding your money.
To tackle this challenge, see our short video, or read our 'Inflation Frustration' FAQ.
All investment views are presented for information only and are not a personal recommendation to buy or sell. Past performance is not a reliable indicator of future returns, investing involves risk and the value of investments, and the income from them, may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.