Investing isn’t for everyone. Some people want guarantees and value stability. If this sounds like you, then investing might not be the right place for your money. Just remember there may be a compromise and you don’t have to go ‘all in’.
For those starting out, it’s often a good idea to dip your toe in the water. Instead of diverting all your savings into investing, you can simply start with just a small amount. Most investment platforms, such as Hargreaves Lansdown, allows you to invest with as little as £50 per month.
Importantly, starting your investing journey with small amounts of money will help you experience the ups and downs associated with investing. Because you won’t be risking large sums of money, any mistakes or fluctuations won’t cost your life savings.
In reality, although many people see investing as a get rich quick scheme, investing, particularly through index funds, can actually be really boring. Remember, chasing the next meme stonk is considered speculating, not investing. Speculating is simply another word for gambling.
Crucially, if you do have a tendency for speculating, then it’s best to start small. When I started investing, I was certainly more of a speculator. However, as the years progressed, I have moved more towards investing in index funds such as Vanguard LifeStrategy funds. For sure, less ‘exciting’ and volatile investments have certainly helped me sleep better at night and in fact, have actually returned better results for me.