A guide to Starting Your Investment Journey

An investment is something you put your money into with the aim of making a profitable return.

There are lots of different ways you can invest money from property, to antiques, collectables, and of course stocks and shares.

The goal is to increase your wealth over the long term by making smart choices with your money.

Stocks are pieces of a company that you can buy, which means you own a ‘share’ of that business.

If the company does well, the value of your shares can go up. You might also earn ‘dividends’ which is a share of the profits that companies sometimes distribute to their shareholders.

Of course success is not guaranteed. If the company does poorly, the value of your shares could go down and you could lose money – in the worst case, you could lose the full value of your shares, including your original investment.

When we talk about an investment portfolio, we’re talking about your collection of investments. It might include different ‘assets’ such as shares of different companies, government bonds, or property.

Think of it like a basket holding the various different items you hope will allow your money to grow. Having a portfolio (i.e. a mix of investments) is important so that you’re not relying on just one thing to succeed. The mix helps reduce risk because if one investment does badly, others might do well and balance it out.

Investing is generally right for people who have some extra money they won’t need soon, have paid off high-interest debts, and have an emergency fund saved (usually 3–6 months of expenses). It’s a good option if you’re looking to grow your money over the long term and can handle some ups and downs along the way.

However, investing may not be right for you if you have high-interest debts, no emergency savings, or if you’ll need the money in the short term (for example, within a year or two). In those cases, it’s better to focus on paying off debt and building financial stability first.