The time horizon over which you are prepared to invest your money influences your potential returns over the long term. If you are prepared to invest for the longer term, higher returning investments such as property and shares have time to recover from short term price fluctuations. Generally, the longer you invest, the greater your chances of maximising the growth of your investment. Another way of growing your investment is the effect of compound interest.

We often hear the saying don’t put all your eggs in one basket and this is true for investing. By spreading your investment dollars across different types of investments, or diversifying, means that your investment outcomes don’t depend on the performance of a single asset class.