How will the nature of savings and investments change for normal individuals in the future?

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In the month-to-month, day-by-day pattern of adult working life, it is sometimes easy to forget to put money aside, be it for your children’s college fund, a mortgage on a house, or simply for a rainy day. Statistics show that today’s modern worker is not as inclined towards saving as the previous generation perhaps were – figures gathered by Scottish Widows, for example, show that in Britain, 1 in 5 people have absolutely nothing in the way of savings, which accounts for roughly 9 million members of the UK working population.

Today’s apparent aversion to saving money could be down to low interest rates offered by banks and the fact that there isn’t much to be gained in terms of returns from the majority of institutionalised savings plans. This puts a lot of people off as they do not see a quantifiable return from their savings and they often feel that there is more ‘value’ in spending their hard earned wages.

For those that still decide they should be doing more than just spend, spend, spend, another option is to invest their money, but there are two immediate issues with this: firstly, standard methods of investment appear very complex and admin-heavy to the average worker, not to mention unreliable; secondly, many forms of traditional investment require large amounts of capital to even get a foot in the door, leaving non-high net worth individuals out in the cold.

The options available therefore appear limited, but this is where equity Crowdfunding comes in. According to Forbes magazine, 2016 is set to see Crowdfunding overtake venture capital in terms of funds gathered worldwide, demonstrating how far the industry has come in a short space of time.

Investing via equity Crowdfunding has opened up the investment market to a much wider demographic, because now only relatively small amounts of funds are needed to invest. Combine this with the fact that the process is backed by experienced, sophisticated investors, as well as being simplified - based entirely online - and the advantages of the new system become very clear. This evolution of the global Crowdfunding market is kick-starting a move towards a simpler, more democratised global investment model.

Bricksave are aiming continue this trend with our Real Estate Crowdfunding platform. The advantage of choosing to invest in Real Estate Crowdfunding with Bricksave as opposed to other equity Crowdfunding platforms is that Bricksave aim for more reliable, long-term profit, ensuring returns from day one by securing tenants for the Crowdfunded properties, and therefore ensuring rental income for the investors; other platforms, including some that also focus on real estate, tend to look for volatile short-term gains that are often unreliable. Bricksave also choose properties in the world’s most desirable locations where the real estate landscape is strong (New York, Miami, Paris, London etc.), thus helping to reduce the potential Crowdfunders’ exposure to risk, and ensuring that their capital is backed by Bricks and Mortar.

Equity Crowdfunding has given people an achievable alternative savings strategy; the simple elegance of the concept and the ease of the process will hopefully encourage more people to plan for the future and invest money for a rainy day. Bricksave aim to provide a new wave of Crowdfunding investors with the option of easy and steadfast real estate investment, a market which was previously unobtainable for the majority of individuals.

Written by Bricksave CEO, Tom de Lucy