Guide For First-time Investors

Two men in shirts sat at table with coffee and paperwork

In 2022 more and more people have decided to change their lives by starting to invest their money instead of just saving it.

Most people decide to take this new financial path to give their money the opportunity to increase over time and to ensure a more economically stable future. Although many think that investing is easy, actually it is a process that requires a lot of caution and above all a solid financial strategy. Before embarking on your new economic path, it is important to plan wisely all your investments and financial moves without forgetting the numerous risks that you can face. That’s because even though most of the time investments represent a really good way to generate financial growth, they are also very risky and could lead to potential losses.

All investments are in fact subject to the market’s volatility, and you can never be sure about how well they’ll perform. This means that when you start investing you should always be prepared to get less than what you expected. As this process is risky, it is crucial to have a strong strategy in order to try to minimise any risk. That’s why financial planning is so important, because it represents a safer way to approach investments and to get the most out of them.

Investment planning can be a good idea, both for people who have a large budget at their disposal and for first-time investors. If you’re planning to start a new investments journey and you want to discover more about this, keep reading. We’ll have a closer look on the most common types of investments available for UK residents.

The most common investments available in the UK

Nowadays first-time investors have a wide choice regarding the many types of investments available in the United Kingdom. As we already mentioned, financial planning is crucial to minimise the risk of potential losses. The first important step is to identify your life goals and your economic goals. If you struggle to workout your investment path you can always seek the help of a financial advisor, who will be able to help you choose the right investments, suitable for you.

Nowadays, many new investors decide to start their investment journey by investing in stocks and shares. This is in fact one of the most common investments among new investors. Investing in stocks and equities means making the purchase of shares and other assets with the goal to acheive an economic return.

You can also consider purchasing bonds: this basically means you’ll be lending money to companies or other entities in order to gain income in the form of interest. Another really common investment is commodities or retirement plans. Lastly there are cryptocurrencies, which are growing more and more in popularity nowadays. Whichever type of investment you choose, you can always recieve help from a financial advisor who will be able to answer all your questions such as how to not pay tax on cryptocurrency UK, what’s the best investment field for you, how to create a solid investment portfolio and more. 

How much should you invest?

First-time investors always struggle to figure out how much to invest at the beginning of their new economic journey. Obviously, there’s not a right answer to this question and it only depends on your skills, on the budget you have available and on your willingness to take risks. If you have a very low budget, the best thing you can do is to start with a very low figure. Even though the more you contribute to your fund, the higher the potential will be for economic grow. Plus, you should always take into account that the higher your investment is, the greater the potential loss can be.

About author

Poppy loves personal finance almost as much as she loves her two cats, Tif and Taz.
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