Investing is not the same as saving. Saving is putting money aside in a safe place, like a bank account, where it either keeps its value or grows slowly. Saving is a smart first step, but it’s not enough to build your wealth.
To grow your wealth, you need your money to earn more money – this is where investing comes in. Investing means using your money to buy financial products that can increase in value or pay you income. The money you make from these products is called returns, and it’s those returns that drive real growth over time.
Whether your goal is to afford a holiday, pay for a wedding, buy your first home, retire comfortably, save ahead for your child’s education, or simply to have more financial freedom, investing your money gives you the opportunity to reach those goals.
Investing your money helps it grow over time so that you can afford bigger goals in the future. Unlike saving, investing comes with more risk, because the money you make (returns) can go up and down. This happens because investment products are linked to things like businesses, property or markets and their value changes depending on what’s happening in the world.
For example, if a company does well, the value of its shares usually goes up. If it struggles, the value can drop – at least for a while. But there’s a balance! The longer you keep your money invested, the more time it has to recover from those ups and downs and the more chance you have of earning higher returns.
So, you can build more wealth in the long run, and it can be a more effective way of achieving your financial goals. Nothing much is ever completely guaranteed anyway - except taxes and the fact that your Tupperware lids will always disappear, of course.
We understand that knowing how to invest can feel daunting. The good news is that you don’t need a fortune to begin! Keep scrolling to learn how to grow your money through investment products and take the guesswork out of building your wealth. We want to help you figure out how you can start investing in the right products to help you reach your financial goals.
Investing is the process of putting your money into products, with the aim of growing your wealth over time.
Rather than letting your money gather dust in a current account, investing helps it work harder by earning returns, either through growing the value of your money or earning you an income.
Compounded growth is essentially the returns that your returns earn. It is money on top of the money that your investment has already earned. The longer you leave all that money, the more it can grow.
In uncertain markets, where inflation can eat away at your savings, investing is how you stay ahead and grow your money over time.
A common investing saying is ‘it’s not about timing the market, but rather about time in the market’. This means the longer you stay invested in different products the more beneficial investing will be for you.
Investing might sound complicated but it’s actually quite simple. Here’s how to get started:
So, whether you’re wondering what the best starter investments are, or how to get started investing with a little money, the key is thinking about your goals and requirements and starting early!
So, whether you’re wondering what the best starter investments are, or how to get started investing with a little money, the key is thinking about your goals and requirements and starting early!
Now that you have an idea of how to get started, we’ve picked some of the best investment opportunities for beginners - easy to understand, low entry points, and products designed to help you grow your money with confidence.
Whatever your goals, there’s a starting point that’s right for you.
We have lots of interesting investment resources to help you understand the world of investing a bit better. Check them out to build up your knowledge and invest with confidence!
Please keep in mind that the information provided on this page is for educational purposes only and shouldn’t be taken as financial advice. If you’d like guidance that’s tailored to you, or want more details about our products, it’s always best to speak to your financial advisor – or simply reach out to us and we’ll be happy to help.
