Investing is a way to potentially increase the value of your money over the longer term – in return for taking a calculated risk with your money.

There are a number of reasons why this makes sense but one of the most important is to stay one step ahead of inflation.

Inflation is the term used to describe what happens when prices go up. It “erodes” the value of your money because your £ will buy less as each year goes past, assuming inflation goes up. Banks and building societies regularly vary rates so check your rates every six months or so and switch to a better rate if you can to keep up with inflation.

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