Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Investing for Beginners: A No-Nonsense Guide to Growing Your Money
Ruby Layram
27th Mar 2025
So, you want to start investing? Good shout. Whether you’re dreaming of early retirement, a house with a sea view, or simply not living off beans on toast in your golden years, investing is one of the best ways to grow your wealth.
But, investing can feel a bit like walking into a gym for the first time. There are complicated-looking machines (stocks, bonds, ETFs), everyone seems to know what they’re doing, and you have no idea where to start.
Not anymore! By the end of this guide, you’ll know exactly what investing is, how it works, and how to get started without making rookie mistakes.
What is Investing (and Why Should You Care)?
In simple terms, investing is putting your money to work so it grows over time.
Instead of letting your cash sit in a savings account earning next to nothing, you’re giving it a job- whether that’s in stocks, property, or even gold.
Why invest? Because inflation (a fancy word for prices going up) means your money loses value over time. £1,000 today won’t buy the same in 10 years. Investing helps you stay ahead of the game and build real wealth.
Investing vs. Saving: What’s the Difference?
Think of saving as putting money aside for a rainy day and investing as planting seeds that (hopefully) turn into a money tree.
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Saving = Safe, low risk, but slow growth. Perfect for emergency funds and short-term goals.
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Investing = More risk, but better potential returns. Ideal for long-term wealth building.
A general rule of thumb is to have 3-6 months’ worth of expenses in savings before you start investing. That way, you won’t need to sell investments in a panic if life throws you a curveball.
Types of Investments (Where to Put Your Money)
There are loads of types of investments, but let’s break down the big ones:
1. Stocks (Shares)
When you buy shares, you own a tiny piece of a company. If the company does well, your shares go up in value. If it flops, well… you get the idea.
Pros: Potential for high returns. Historically, stocks have beaten inflation over time.
Cons: Prices go up and down daily, so not for the faint-hearted.
2. Bonds
A bond is like lending money to the government or a company. They pay you interest, and you get your money back at the end of the term.
Pros: Less risky than stocks. Provides a predictable income.
Cons: Lower returns than stocks, especially when inflation is high.
3. Property
Buying a house to rent out? That’s investing in property. House prices tend to rise long-term, plus you get rental income.
Pros: Can provide both rental income and price appreciation.
Cons: Requires a big upfront investment and comes with maintenance headaches.
4. Funds (ETFs, Mutual Funds, Index Funds)
A fund pools money from multiple investors and spreads it across different stocks or assets.
Pros: Lower risk because your money is spread out. Great for beginners.
Cons: Some have fees, so check before you invest.
5. Gold & Commodities
Gold, silver, and even oil are considered “safe-haven” investments when stock markets get wobbly.
Pros: A hedge against inflation. Good for diversification.
Cons: Prices can be unpredictable, and gold doesn’t pay dividends.
How to Start Investing
In the following section, we will cover how to get started with investing in the UK as a complete beginner.
This guide scratches the surface- I recommend taking some time to research the process in more detail before putting any money on the line.
Step 1: Set Your Investing Goals
Ask yourself: Why are you investing?
Retirement? A house deposit? World domination? Knowing your goals helps shape your strategy.
Here’s a helpful guide on how to create an investing strategy.
Step 2: Choose an Investment Platform
You’ll need a brokerage account to buy investments. Some of the best UK investment platforms include:
| Platform Name | What We Like | What We Don’t Like | Minimum Deposit |
|---|---|---|---|
| InvestEngine | The best ETF platform that offers zero commissions on stocks and shares, fully managed protfolios, and up to £4000 cashback for new ISA accounts. | Only offers ETFs, no access to cryptocurrencies | £100 |
| XTB | Zero commission on stocks and shares, invest in ready-made portfolios for passive investing, access over 6000 assets | XTB does not provide access to cryptocurrencies | £1 |
| eToro | Social trading, copy trading, free demo account, access to stocks and crypto | No pension options, high fees | $10 |
Look for platforms with low fees and an easy-to-use app.
Step 3: Decide How Much to Invest
You don’t need thousands to start. Many platforms let you begin with as little as £10-£100.
Golden rule: Only invest money you won’t need for at least five years (this is because withdrawing your investments can incur hefty fees!).
Step 4: Pick Your Investments
If you’re unsure, start with index funds (they track the stock market and are low-cost). Warren Buffett swears by them, and if it’s good enough for him… (you get the idea!)
Here’s an interesting post all about how to invest like Warren Buffet.
Step 5: Invest Regularly
Consistency is key. Set up a Direct Debit to invest a fixed amount each month. This strategy- called pound-cost averaging– smooths out market ups and downs.
Common Investing Mistakes (And How to Avoid Them)
If you want to get ahead of the game, it’s important to be aware of common investing mistakes and how to avoid them!
- Trying to time the market: Even the pros get it wrong. Just invest regularly and stay the course.
- Investing without research: Don’t just buy stocks because your mate Dave says it’s “going to the moon”.
- Panicking when markets drop: The stock market WILL have bad days. Stay calm, don’t sell in fear.
- Ignoring fees: High fees eat into profits. Stick to low-cost funds and platforms.
- Putting all your money in one stock: Spread your risk. If one company tanks, you won’t lose everything.
Final Thoughts: Is Investing Worth It?
Absolutely. Investing is one of the best ways to grow your money over time. It’s not about getting rich overnight (that’s called gambling). It’s about slow, steady wealth-building so future-you can enjoy financial freedom.
Start small, be patient, and trust the process. In 10, 20, or 30 years, you’ll be very glad you did.
After reading this guide, I recommend doing a bit of further research. Looking into different types of investments and investment platforms that you could use to build wealth for yourself. Then, make a PLAN.
Do you want to learn more about investing? To keep on top of the latest developments in the wider investing sphere sign up to the fortnightly MoneyMagpie Investing Newsletter. It’s free and you can unsubscribe at any time.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. Companies listed above are not necessarily endorsed by Money Magpie. When investing your capital is at risk.
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