The Power of Regular Investment (How to Set up a Direct Debit)

We all want to know the secret to a wealthier future, and the truth is there’s one simple and effective step you could take today. By setting up a recurring direct debit, so you can invest regularly, you are giving yourself the best chance of reaching your financial goals.

Investing on Auto Pilot

Investing on auto pilot means automating your investment. Think of this as the same as paying the rent on the first of the month when your paycheque goes in. Establishing this habit means you are paying yourself first, putting money towards your future that over time could come back to you with greater value. By automating this investment with a direct debit straight after payday means you are putting your financial priorities first.

Compound Growth

Compound growth is another benefit of regular investing. This is where you get returns not just on your initial investment, but also growth on your growth.

For example, you put £10,000 into an investment:

• In the first year, you make a 5% return, giving you £10,500.
• In year two, you again make a 5% return, only this time it is on your initial investment and year one return, 5% of your £10,500 which is £525, giving you a total of £11,025.
• In year three, you again make a 5% return, this time on your £11,025, which means a £551.25 return, giving you a total £11,576.25.

So, the earlier, and the more regularly you invest, the more opportunity you have for compound growth, potentially making your money worth more.

Now that you know the power of regular investments, get started by setting up a direct debit with True Potential.

Adding a direct debit is easy.

1. Log in to your True Potential online account as usual
2. Click through to your investments
3. Scroll down and select the policy you wish to add a direct debit to
4. On the policy page, click ‘Edit monthly investment’
5. Enter your monthly amount and bank details, and we’ll take care of the rest

Remember, staying disciplined with little and often investing could help you to achieve your financial goal. Automate your investment to pay yourself first, by investing on auto pilot you put yourself in a strong position to grow your money through pound cost averaging and compound growth. Thank you for watching, and please subscribe to our YouTube channel for more on the habits of successful investor