Figuring out how to start investing for beginners can be a daunting prospect. There is a lot of complicated jargon, products, and strategies. To become a successful investor it takes hard work and time.
Fortunately, you can start investing without being an expert. Investment Platforms have ready-made portfolios where all the hard work has been done for you.
Here are four simple and easy steps to help you start investing.
1. Start Saving
You can start investing with as little as £1 a month with some investment platforms. Saving at least £25 a month will give you more options of who you can invest with.
Everyone can make some savings; it just takes a little bit of work or sacrifice. However, the more you save, the more you can invest and potentially the more you can earn.
Make sure you are investing with money you can afford to lose.
2. Open an Investment Account
You can open an investment account with most high street banks, online investment platforms and social copy trading platforms.
There has never been more choice for investors. The process is quick and easy and can take as little as 10 minutes.
I use Hargreaves Lansdown, IG Index and eToro.
3. Set up a direct debit
Regular investing means you do not have to worry about timing the market.
If the markets fall you will be investing when the markets are cheapest so in theory, when they rebound you stand to gain the most.
The longer your investment horizon the more the magic of compounding can work for you.
4. Pick a ready-made portfolio
Most platforms offer ready-made portfolios for you to invest in.
You don’t have to worry about picking the investments. Ready-made portfolios have different investments selected for you.
Personally, I have invested in ready-made portfolio with Standard Life, Fidelity and Vanguard.
I also have a ready-made portfolio which you can copy at eToro. My portfolio has been up over 30% in the last 13 months. Open an account and find me @harryemanuel.
You can find out more about ready-made portfolios with our beginners guide.
How to start investing for beginners summary
People often ask how much can I make? It depends on how much you invest, the rate at which your investments grow and the length of time you invest for.
You can realistically turn just five pounds into a million with a disciplined saving approach and a bit of patience.
Before you start investing make sure you have worked out your investment goals, time horizons and attitude to risk. See things to consider before you start investing.
To help you on your investment journey I recommend you start to increase your knowledge by reading the best investing books for beginners.
Past performance is no guarantee of future success. Please be aware investing can be risky. While the stock market has gone up over time there are no guarantees it will continue to go up. There can also be periods of low or negative growth over extended periods of time.
Please seek financial advice if you are unsure if investing is right for you.