Hi,

I'm looking to start investing money in something that will benefit me along the line.. Stock Market, property etc.

Being young and very inexperienced with this whole investment thing, has anyone got any good tips/advice for me around what to invest in, where do I start, who do I see etc?

May as well start young and build up and up eh?

Gaz

Originally posted by GazB
Hi,

I'm looking to start investing money in something that will benefit me along the line.. Stock Market, property etc.

Being young and very inexperienced with this whole investment thing, has anyone got any good tips/advice for me around what to invest in, where do I start, who do I see etc?

May as well start young and build up and up eh?

Gaz

Be wary of financial advisors. Never forget that some of the ones you may see at banks have vested interests. They might not sell you the best product for your needs but rather the one that gets them most commission.

Some are good but even experts make mistakes.

The stock market is essentially gambling. Do not dabble if you can't afford to lose your money. There are much 'safer' options on the market with less risk attached.

A good starting point to get the general feel of the financial market is to buy one of the quality Sunday papers for a couple of weeks and look at the money sections, or browse their websites.

Read everything on Motley Fool (http://www.motleyfool.co.uk) best site I know for this type of advice.

Originally posted by Classic Rock
Read everything on Motley Fool (http://www.motleyfool.co.uk) best site I know for this type of advice.


I'll second that. It's a superb site for helping anyone find out about what they should and shouldn't be doing with their money.

And just as an extra, it's usually good to ensure you have a reasonable amount of easily accessible savings in an account paying a decent amount of interest before you start investing in riskier markets. You may have such a fund, I don't know, I'm just saying.

Getting Started -- Your First Investing Steps


Here are the key points you need to know about getting started as an investor:


Before you invest in the stock market i) get out of all non-mortgage debt and ii) have some spare cash set aside for a rainy day, ideally enough to live off for at least 3 months.

That's me buggered then. I guess it's something for me to work towards though eh?

Originally posted by GazB
That's me buggered then. I guess it's something for me to work towards though eh?

Exactly. Put a bit aside every month and it's surprising how quickly it starts to add up.

(Listen to me, I sound like my mum!) :D

Problem is, it'll be a few months before I can start saving as I'm going to Magaluf in June which will set me back nearly £2000 for the holiday, spending money and clothes etc!

Plus I have my credit card to pay off! I'll aim to have saved at least £1K by August then and go from there.

Ta

Gaz

The first thing you should do is open a mini-Isa and put away money regularly. It won't make you millions, but it's a sum of money that'll be growing all the time, and it's easy to access if you ever need it.

It's probably not a good idea for you to invest money in stocks and shares unless a) you really know what you're doing and b) you have plenty of money to begin with that you don't mind taking risks with.

Consider how long you want to tie your money up for. Remember that you'll need a cash reserve in case you suddenly lose your job or whatever. From what you say, it sounds more like you want to "save money" (put it somewhere high interest where you can get at it) more than "invest money" (tie it up for a certain time with a certain element of risk). In this case you're really looking at a mini cash ISA. This is basically a tax-free savings account where you can deposit upto £3k per tax year.

I think the ISA with the best rate is the Marks & Spencer one at 4.5%. There is one with a slightly higher rate, but M+S' is guaranteed to track the BoE base rate, which is on the rise. You can pay in as you wish.

For a savings account where you deposit a regular monthly sum, the new Halifax account at 6% is good, although the interest is taxable. Also watch out because I think there are penalties if you withdraw after less than a year and maybe if you don't pay in. I suspect that the ISA would be better for your needs.

If you are ethically-minded then consider providers such as Smile, who pay a bit less interest but they won't put your money into Big Evil Polluting Nasty Republican Co Inc.

You said you've got a credit card. Generally it's best to try to pay that off first, since the interest rate on that is likely to be higher than you'll earn on an investment.

If you are thining about ISAs, it may be worth trying to open one before the 5th April. That's because any money you put in before then will come from this years tax allowance, leaving you with the full £3000 (if it's a mini cash ISA) allowance to save next year.

If you're wanting to save a certain amount each month, some accounts offer a bonus for doing so. If you arrange a standing order just after pay day, you might not notice the money that you're saving each month.

www.moneyfacts.co.uk has interest rates, but remember to look at whether there are any restrictions on withdrawing money too.