Whether you're a seasoned investor, or at the start of your wealth journey, taking a long-term approach could make all the difference.

Investing in the stock market can help you meet your financial goals. If you're new to investing, it may be a good idea to think about what some of your goals might be, as this can help you to remain invested and retain a long-term view.

Why timescales matter when you’re investing
Investing for at least five years allows your investments the opportunity to recover from any short-term blips in performance.

A wide variety of factors can influence market performance and day-to-day movements can be impossible to predict. As a result, over several weeks or months investment returns can greatly vary.

Rather than attempting to navigate the markets with a short-term mindset, investing with a longer time frame is more likely to produce positive returns.

If you’re saving for next year’s holiday, or a house deposit that you expect to use within five years, saving through a high-interest bank account or Cash ISA may be a better approach – and will probably help you to sleep better, too.

Even when investing for the long term, it’s important to feel comfortable with the amount you’re putting into the markets and what you’re investing in.

Remember, the value of your investments can go down as well as up and you could end up with less than you put in.

3 golden rules to help you grow your wealth over the long term

1. Make sure you’re in control of your budget before you invest

While starting to invest early allows your wealth more time to grow, you shouldn’t rush in until you can truly afford to put your money away for a period of time.

So, before you invest, make sure you’re on top of your day-to-day budget:

Clear any expensive debts, start by paying off any credit cards – high interest and charges can quickly add up, and could exceed any investment returns, so make this a priority.
Save a comfortable cash cushion in an easy access account – having ready access to cash in the event of an emergency could help you avoid having to sell your investments too soon.
Review your budget and figure out how much you can afford to invest – getting on top of your income and outgoings can help you work out how much you might be able to invest regularly, and increase the chance of meeting your long-term goals.

2. Keep a calm head and stay invested

To be a successful investor and enjoy positive returns takes a degree of discipline. Periods of market fluctuation are inevitable, even necessary, but these can be hard to sit through.

While it’s entirely natural to feel anxious when markets are particularly volatile, the smartest investors will keep their cool, remain invested, and let things take their course.

During difficult periods, your mindset is key to success.

Global events will always have an effect on the stock market, but do your best to focus on the long term and ignore the noise. Not only will this aid your emotional wellbeing but keeping a cool head is also more likely to help you reach your financial goals.

Read more: What is emotional investing and 5 top tips to help you avoid it

3. Investing small sums regularly could help smooth out returns

You don’t necessarily need a lump sum to invest. Many investors, and even seasoned fund managers, prefer to drip-feed money into the markets. This can help to smooth out the effects of short-term market changes.

Read more: Regular investing: A profitable habit that could make saving easy in 2025

Investing regularly means you will buy more shares in months when prices have dipped and less when prices are higher. This is called “pound cost averaging”.

Get in touch
To find out more about how we can help you invest to achieve your long-term goals, please get in touch. Email info.wp@titanwh.com or call us on 0800 048 0150.

Please note
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

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