Is there space in your monthly budget for a regular investment? There are a lot of benefits to the drip-feed approach.
It’s not long since you needed a large chunk of cash to start investing. That’s changed now, and Moneycube can arrange investments of as little as €250 per month.
Each month, your money will be placed automatically into highly diversified, professionally managed investment funds with scope for growth over the medium term.
We’ve described five of the benefits of investing via a monthly direct debit.
1. It’s easier to be good with your money
Setting up a direct debit investment helps you keep good money habits. The amount you set is debited from your bank account by the fund provider each month, and invested for you in your chosen investment fund.
Regular investing can create a significant sum: saving €500 a month over 7 years could create a pot worth more than €55,000 – just check out the possible gains on our calculator here.
2. Starting is easier
It often takes time to build up a lump sum, and inflation is eating into it while it stays on deposit. If you start investing with smaller amounts, your money gets working for you more quickly.
At Moneycube, we do this online.
3. Bank interest rates are on the floor
With bank accounts paying zero or even charging you, investing is the only route to give yourself the prospect of growth in your money.
If you have a chunk of money which has been going nowhere in the bank or credit union in recent years, you can also add a lump sum to your regular investment to kick things off.
4. You don’t need to time the market
Markets move all the time. When you add to your investment on a regular basis, you’re averaging out the cost at which you invest. (This is known as Euro-cost averaging in the business).
For you, the investor, this means you’re not taking a gamble on a particular period being a high or a low point in the market.
5. Start now, change later
Once your regular investment is in place, it’s easy to make changes. You can withdraw some funds, for example.
It’s also simple to increase your regular payment.
Or you can re-allocate your money into different investment funds. For example, you could lock in gains in higher-growth funds by moving some money into a fund with a lower risk/ reward profile.
Slow and steady wins the race – consider putting a direct debit investment plan in place today.
Some useful links
What’s a multi-asset fund?
Investment returns calculator