(Without the Boring Bits)
If you’ve ever wondered, “Am I missing a trick with my money?”, you’re not alone — and you’re asking a very smart question.
Most people keep their money in cash because it’s familiar. But if you want your savings to do more than just sit still, investing might be worth a closer look.
This beginner-friendly guide will walk you through what investing is, how it works, and whether it could be right for you.
What Is Investing?
Investing is the act of using your money to try and grow your money.
Instead of leaving it in a savings account earning minimal interest, you put it to work in something that could increase in value over time. That might be shares, funds, property, or other assets.
But here’s the key point: investing always involves risk. The value of your investments can go up, down, and fluctuate along the way. You might get back less than you originally put in. That’s why understanding the basics before diving in is so important.
What Can You Invest In?
You can technically invest in just about anything — property, precious metals, even art or collectibles. But for most people, investing starts with either:
Shares
When you buy shares, you’re buying a small piece of a company. If the company grows and performs well, your shares may increase in value — and some may pay you dividends (a share of profits). But if the company struggles, your investment can lose value too.
Funds
Funds are like pre-packed investment bundles. Rather than buying one company’s share, you’re investing in a basket of shares, bonds, or other assets, often chosen and managed by a professional. Funds offer built-in diversification, which is why many first-time investors start here.
What’s the Point of Investing?
The big reason people invest is simple: long-term growth.
Over time, investing has historically delivered better returns than cash savings. That’s because you’re tapping into the power of markets — businesses growing, economies expanding, dividends being paid — all working together to help your money grow.
Some people invest for income (e.g., dividends or bond interest). Others invest for capital growth (seeing the value of their investments rise over time). Many aim for a mix of both.
How Much Risk Should You Take?
There’s no one-size-fits-all answer here — because risk tolerance is personal.
- Higher-risk investments can offer higher potential returns but come with more ups and downs.
- Lower-risk investments tend to be more stable, but the returns may be lower.
If you’re not sure how you feel about investment risk, start small. See how it feels. You can adjust later.
And if you really don’t know where you stand, proper financial advice can help you assess your goals, capacity for loss, and investment personality.
Can You Access Your Money?
Yes — in most cases, you can sell your investments and get your money back within a few working days.
But investing works best when you can leave your money alone. That’s why it’s wise to only invest money you won’t need for at least five years. It gives your investments time to ride out any short-term volatility and grow steadily over the long run.
Is Now a Good Time to Invest?
The truth is: there’s never a “perfect” time to invest — and waiting for the ideal moment often means never starting.
Instead, ask yourself:
- Do I have any high-interest debt I should clear first?
- Have I built an emergency fund (ideally 3–6 months’ worth of expenses)?
- Can I afford to leave this money invested for 5+ years?
If the answer to all three is yes, then now might be exactly the right time to take the next step.
What’s the Easiest Way to Start?
A great first step for UK investors is a Stocks & Shares ISA.
This is a type of investment account that protects your returns from income tax and capital gains tax. You can use your ISA allowance each tax year (currently up to £20,000) and start investing in shares, funds, or a ready-made portfolio.
You can:
- Choose your own investments (if you’re confident).
- Pick from a range of funds (if you want diversity).
- Use a ready-made portfolio (if you want a hands-off approach).
- Get advice to help you decide (if you’re not sure where to begin).
Five Smart Rules to Remember
- Build your emergency fund first — this is your safety net.
- Start small — you don’t need to go all-in on day one.
- Use your ISA allowance — it’s a powerful tax break.
- Think long-term — aim for five years or more.
- Don’t guess — get advice — especially if you’re unsure.
Final Thought
You don’t need to be an expert to start investing. You just need to be curious, cautious, and clear about your goals.
This isn’t about chasing the next big thing or getting rich overnight. It’s about giving your future self more choices — and letting your money work as hard as you do.
And if you want help building a plan or understanding how investing could fit into your financial life, that’s exactly what I do.
My mission is to make financial planning feel less intimidating and more empowering. If this guide helped simplify investing for you, share it with someone who might be putting it off.
You can also follow along for more practical tips — and if you’ve got a question or something you’d like me to cover, just drop it in the comments. Your questions help shape future content.