If you’ve ever wondered whether you should start investing, you’re not alone. A lot of people feel unsure about where to begin or worry they’ll make the wrong move. The truth is, investing can be one of the most effective ways to grow your money over the long term, but only if you understand what you’re getting into.
Why Investing Beats Saving (Over Time)
Savings accounts are great for short-term goals and keeping an emergency fund. Right now, some of the best savings accounts pay around 4% a year. That’s decent – but historically, the stock market has performed much better over longer periods.
Across most 10-year stretches, the stock market has averaged roughly 10% per year. That gap makes a huge difference over time, which is why investing becomes more powerful the longer you can leave your money untouched. In general, we think a minimum time horizon of 5 to 10 years is a good place to start.
Start Small and Learn as You Go
You don’t need thousands of pounds to begin investing. In fact, starting small is usually the smartest move. Put in a little, learn how things work, get used to the ups and downs, and gradually build the habit. Many people add money every payday, a simple, steady approach that takes the pressure off.
ETFs vs Individual Stocks
If you’re new to investing, ETFs (Exchange-Traded Funds) are often the best place to start. They’re essentially baskets of many companies, which means your money is spread out. If one company struggles, it won’t sink your whole investment.
- Lower risk (compared to owning one company)
- Potentially lower returns
- Much easier for beginners
If you want more excitement, and more risk, you can buy individual shares of companies you love. Just remember: individual stocks can be unpredictable, and in the worst-case scenario, you could lose the entire investment. Make sure you understand the risks before diving in.
Where to Start Investing
There are lots of investing apps out there, but a few stand out for beginners:
- Trading 212 – A popular choice because they offer fee-free investing, a simple interface, and access to thousands of stocks and ETFs.
- InvestEngine – Great if you want to stick purely to ETFs. Clean design, low costs, and easy to use.
Whichever platform you choose, make sure you read up a little more first. We always recommend doing deeper research, and we’ll be posting a more detailed beginner’s guide soon.
Don’t Watch Your Investments Every Day
One of the biggest mistakes new investors make is checking their portfolio constantly. Markets rise and fall all the time, it’s normal. If you look every day, you’ll feel every tiny movement, and that can lead to panic-selling at the worst possible moment.
A common phrase is “set it and forget it.” And honestly, it works. You should think of investing as a long-term plan, not a daily hobby. Aim for at least five years, ideally longer.
Final Thoughts
Investing isn’t about getting rich quickly. It’s about giving your money a chance to work harder over the long term. Start small, do your research, choose investments that make sense for your risk level, and stay consistent. If you take a calm, long-term approach, investing can be one of the best decisions you ever make with your money, and we’re here to help guide you along the way.
