The current cost of living crisis is affecting us all in some way, whether that’s the rising cost of food, higher energy prices, or more costly mortgage payments caused by soaring inflation rates. In the face of increased costs, many of us are looking for ways to tighten our belts and potentially access some of our savings to help with day-to-day expenses.
But it’s important to be aware of the consequences of taking money from your savings and investments. Depending on the actions you take, there may be unintended consequences later on, like missed opportunities for growth, penalties/charges or tax implications. So you’ll want to make sure that you’re accessing funds wisely, in a way that minimises any potential downsides.
This article touches upon some things to consider if you’re looking at withdrawing money from savings and investments.
Please note this is not a recommended course of action or financial advice but highlights some things to think about if you’re considering your options.