4. Choose an investment provider
Once you know what you want to invest in, the cheapest way to do so is through an investment platform that allows you to open an Isa, Sipp or general investment account.
Popular platforms include Fidelity, Hargreaves Lansdown, Interactive Investor and AJ Bell, but there are plenty of smaller firms and app-based “robo-advisers” to consider too.
When comparing platforms, look at the charges for running your account as these can eat into your returns.
5. Start investing
Once you’ve found a suitable investment platform, you can open your investment account and get started.
Generally, the earlier you can start investing the better. Your investment will have longer to grow, and you’ll benefit from compounding – allowing you to earn returns on your returns. Investing early gives you longer to ride out bumps in the stock market, too.
Of course, the reality is that not everyone can invest when they’re young but the good news is it’s never too late to start.
Camilla Esmund, of stockbroker Interactive Investor, said: “There’s no perfect time to kick-start your investment journey. The important thing to carefully consider is your stage of life, your financial goals and your tolerance for risk.”
It’s also important to consider your overall financial situation, including whether you have existing debts and any emergency cash savings.
Will Stevens, head of financial planning at wealth manager Killik & Co, said: “Everyone should ensure the repayment of any unsecured debt, particularly those with high interest rates such as credit card debt or personal loans – as these can accrue interest at far greater rates than any return on investing.
“Next, make sure that you have a rainy-day money fund of cash at the bank that can be accessed should there be an emergency, such as the boiler or car breaking down. Once these other areas are addressed, you can begin to think about investing.”