Why Start Investing?
Investing is one of the most effective ways to build long-term wealth and achieve your financial goals. While keeping money in a savings account is safe, investing offers the potential for higher returns that can help your money grow faster than inflation.
Key Investment Principles
1. Start Early
The power of compound interest means the earlier you start, the more your money can grow.
2. Diversify
Spread your investments across different assets to manage risk.
3. Think Long-Term
Successful investing is about time in the market, not timing the market.
Types of Investments
Stocks
Ownership in companies, offering potential for growth and dividends.
Bonds
Loans to governments or companies, providing regular interest payments.
Funds
Collections of investments managed by professionals, offering instant diversification.
Pro Tip
Consider starting with a low-cost index fund that tracks a broad market index. This provides diversification and is often recommended for beginners.
Getting Started
Begin by setting clear investment goals and understanding your risk tolerance. Consider starting with regular, small investments through a stocks & shares ISA or workplace pension. Remember to only invest what you can afford to keep invested for at least 5 years.