Expert Investment Tips from £50 to £50,000

Last Updated on: 22nd November 2023, 11:50 am

Whenever a person hears about investing, the first picture that is drawn in the imagination is a person involved in the stock trading market on the FXTM platform making transactions in the amount of at least several thousand. To a certain extent, this is true. However, the truth is that investments are possible even with a mere sum of £50. What is more, one may even become a Forex trader with a modest amount of money. Here are some tips that will help you decide on how to start investing. These are, however, just hints to show that there is potential for anyone. If you are serious to start investing, think of the niche and find a professional financial adviser.

Beginning with as Much As £50

If you have just made the decision to start investing and can start with a mere amount of £50, the most important is to identify what the purpose of this investment is. Are you going to save money to make a considerable purchase in a year or several? Is it going to be an emergency fund you would like to save for? In these cases, transferring £50 monthly to a savings account is the best solution. Especially, if you are intending to collect an emergency fund.

Regular deposits on an ISA is a riskless possibility to save finances. Having no emergency fund may cause serious financial problems in the future. Thus, placing this money under a threat is unacceptable. However, if you have decided to begin your way to becoming a successful investor, it is possible to begin learning the basics of Forex trading with a mere amount of £50-100 per month.

The only most crucial rule, according to Justin Modray, the Director of Candid Financial Advice, is not to take the risk one cannot handle. Thus, one should invest the amount that can be lost or forgotten about for the long term.

Investing £250 Per Month

This is quite a sufficient amount of money that makes it possible to diversify investment with different types of investments. It is unlikely that all the assets you are going to invest in will start moving in the same direction at the same time. Some financial advisers stress the significance of making wise steps and investing in assets that are not subject to high volatility like stock markets. However, such an equity income is the possibility to get extra income from the fact that it is exposed to the stock market.

Serious Investment of £10,000

If you have dared to invest such an amount, the most paramount aspect to consider is the risk. Any investment, despite the number of advisers or experience you have got, is a risk. What will happen with your financial well-being if you lose this money? In addition to honestly answering this question, it is crucial to think about how much money you are ready to risk, for which period you are planning to invest and what is the goal you would like to achieve?

After identifying the main principles of your investments, it is wise to check different markets across the globe. Most financial advisers recommend splitting the total amount among the UK (around 40%), USA (with 20% of the amount), Europe (around 15%), Asian and spreading markets (5% of investment amount) markets.

Growing High to £50,000

Whenever you decide to invest such an amount, it is crucial to weigh all the risks. Quite an often loss of 20% will decrease the amount to £40,000. Your initial investment may decrease even less. Are you ready for such a risk? If the response is positive, consider splitting your investments between shares, property, fixed interest funds. What is more, it is crucial to distribute among different geographical regions and the size of businesses in which you are going to invest.

Investment is always a risky way to success. However, remember, nothing stake — nothing draw. If you have decided to dream big, think of the amount you are ready to start with, learn the basic strategies and principles, and go ahead! Just make sure you are well-informed and prepared for the future life of an investor.

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