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Six steps for the
first-time investor

Like the idea of investing your money, but don’t know where to begin? Perhaps our guide can help

Investing can be a great way to grow your money over time.

If you’ve decided to enter the world of investing but don’t quite know where to begin, this brief guide outlines six key steps you could take when beginning your investment journey…

1 Identify your goals and how much you need

Ask yourself: Why am I investing? Is it to help to raise money to buy your dream home? To help the children through university? Or do you have a broader goal in mind, such as simply helping to secure a better financial future?

A good place to start is to identify your goals and work out how much you need to achieve them.

2 Learn about the types of investments

You don’t have to be an expert to invest, but it is wise to grasp the basics and understand the different options available to you.

Take the time to educate yourself on investing – to start with, check out our Beginner's guide to investing. The Money Advice Service also has lots of impartial information on how you can invest your money.

3 Figure out monthly payments

Sit down and work out how much you can afford to invest each month.

Be realistic – there’s no harm in wanting to reach your goals quickly, but don’t put yourself under unnecessary financial strain.

Get a glimpse of what you might get back if you invest in a Stocks and Shares ISA using our tool. But remember, the value of an investment can go down as well as up, and you may not get back the full amount invested.

4 Understand your risk appetite

Investing isn’t without its risks, and the level of risk you’re willing to accept may depend on things like your age, income, and goals.

You need to balance the greater potential for long-term growth with the impact on your financial situation should you lose money. Our article explores risk in more detail.

5 Find an investment to suit your needs

It’s vital to do your homework when it comes to investing; decide what’s most important to you, and pick a reputable provider who has the right investment plans for you and your goals.

As a first-time investor, you may want to seek the help of a financial adviser who can help you choose the option to best suit your circumstances (bear in mind that you’ll have to pay for professional advice).

Also, it may not pay off to put all your eggs in one basket, so consider spreading your money across a number of investment options – known as ‘diversifying’ – as a way of minimising overall risk in your portfolio (the collection of investments you own).

6 Enjoy the ride 

Application accepted? Time to set the wheels in motion! Once you’ve set up a direct debit, it’s important to regularly review your investment to ensure you’re on track to achieving your future financial goals.

What now?

Find out more about the Zurich Stocks and Shares ISA

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