How to start investing when you don’t know where to begin

Money can be a tough subject to get your head around, especially when you’ve got constant bills to pay as well as the pressure to put something aside for emergencies and the future.

Let’s face it, not many of us are clued up on investing, and it’s not a subject we tend to be taught at school. The financial world can feel daunting, full of unfamiliar phrases and decisions you don’t feel equipped to make.

But investing doesn’t always have to be complicated, and you certainly don’t need to be sitting on a huge six-figure sum to get started. With clear information, you can take small steps to understand whether investing could be right for you. 

That lack of confidence comes through clearly on the Mumsnet forums*. Mumsnet user adviceatthislatestage says: “I feel quite embarrassed that I can hold down a job, raise a family, run a home and yet have no real clue about finances, other than the basic stuff.”

What is investing?

You’ve probably heard the word ‘investing’ thrown around whenever money comes up, but what does it actually mean? Do you need a finance degree or a desk in a City office to get involved? Thankfully, no. To put things simply, investing is just putting your money into something in the plan that it will grow in value over time.

It’s different from keeping your cash in a savings account, where you may earn interest on what you’ve put away. With investing, returns aren’t guaranteed and the value of your investments can go down as well as up, but over time the returns have been shown to be higher than both cash and inflation. That’s why it’s generally something to think about for the longer term, rather than a quick fix.

There are plenty of ways to invest, but two of the most investments you’ll hear are:

Shares

Shares mean you buy a small piece of a company. If you buy shares in a business and the value of that business rises, the value of your shares should rise with it. 

There are also companies that pay shareholders a portion of their profits, which are known as dividends. This is a bit of income that gets paid out to investors, helping to boost returns.

Funds

With funds, you effectively pool your money with other investors and spread your money across a collection of investments rather than putting everything into one company. It’s a way of keeping your options open instead of putting all your eggs in one basket. 

A fund could hold shares in a dozen or even hundreds of businesses, so your money isn’t riding on the fortunes of a single company. It may also have a mixture of different types of investments. This spreads the risk,meaning that if one investment doesn’t do well it won’t have a dramatic impact on your overall pot.

Why invest rather than save?

When it comes to saving versus investing, it doesn’t have to be an either-or decision. Many people use a mixture of both. 

Putting every last penny of your money into investments isn’t always a smart idea, as investing is best viewed as a long-term plan. 

Life can throw us curveballs, too, and there may be times when you need quick access to your money, from the boiler going bust to the car needing repairs or kids growing out of their clothes in record time.

There’s the cash you may need to access straight away for emergencies, money you’re likely to need over the next few years for things like holidays, home improvements or other big expenses, and then savings you’re comfortable leaving untouched for longer.

It’s that longer-term pot you should consider investing. A longer timeframe gives your money more opportunity to grow, although growth is never guaranteed. Inflation can also reduce what cash savings will buy over time.

Mumsnet users tend to draw the same line between short- and long-term money. Mumsnet user ProfessorBinturong says: “Money wanted in the next five years - and an emergency buffer - should be in cash savings, not invested.”

Danni Hewson, Head of Financial Analysis at AJ Bell, tells Mumsnet: "A lot of people ask me ‘why should I invest?’. The important thing about investing is there are two sets of opportunities to grow your money. 

“The first is capital growth - if the value of your shares, funds or bonds rises over time, you would make a profit. The second is dividends - some investments, such as shares or funds, may pay out dividends multiple times per year, and they often get bigger over time. 

“In theory, those two elements combined can potentially grow your money by a greater amount than you could get from investing in cash.”

Why does investing matter for women?

Research has shown that women hold significantly less in investments than men, with UK investment platform AJ Bell estimating the gender investment gap across the UK is £1.65 trillion**. 

AJ Bell conducted research into this issue and found that while there are nearly a million more women with Cash ISAs than men in the UK, according to HMRC data, the clear gap suggests a real barrier for investing. When surveyed, AJ Bell found that the most common concerns preventing women from investing were perceived lack of knowledge, fear of making mistakes and choice paralysis.

The AJ Bell Money Matters campaign was launched in 2021 by an all-female team from AJ Bell, made up of Director of Personal Finance, Laura Suter; Head of Financial Analysis, Danni Hewson; Marketing Director, Emma Keywood; Head of Campaigns, Jenny Putley; and investment content writer Hannah Williford. 

This campaign seeks to encourage women to engage with their finances and feel good about investing. It includes podcasts, articles and events designed to provide easy-to-digest information and promote inclusivity in investing.

Four key questions to ask before investing

If you’re keen to start investing, take the time to do the research and start with these four questions:

1. What is your goal?

Are you building a house deposit, planning for retirement or simply hoping to grow your money over time? Understanding your goal can help you research which type of account and investment approach could suit your circumstances.

2. What is your timeframe?

As we’ve said, investing is best considered a long-term approach rather than a quick money-making scheme. Make sure you have enough cash in an easy-access account for unexpected expenses, and then after that you cn consider investing. 

AJ Bell Director of Personal Finance, Laura Suter, explains: "Before investing, make sure that you’ve got your emergency savings in cash, as well as any money you’ll need in five years - for a big holiday, a new car or your first home, for example. Any savings goal that’s further out than five years could be ideal for investing.”

3. What is your appetite for risk?

Risk is a key part of investing, and no option eliminates it completely. Higher-risk investments can bring bigger gains, but also potentially bigger losses. Lower-risk investments can fluctuate less, but they may offer lower returns. 

Think about how you’d feel if the value of your investments fell, and whether you could afford to leave the money invested. 

4. How much would you like to invest?

As we've already mentioned, you don't have to have Beyoncé’s bank balance to start investing. In fact, there are plenty of platforms that let you invest small amounts. Work out what’s realistic for you to put aside each month or as a lump sum and build up from there.

Starting small with regular investing

If investing still feels daunting, you can start small. AJ Bell lets customers invest by monthly direct debit from £25, which is less than £1 a day.

And don’t think these small investments can’t add up. Laura Suter says: "Assuming 6% a year investment growth after charges, by investing £25 a month you’d have £1,793 after five years and £4,191 after 10 years. If you kept up the trend for 15 years, assuming those same 6% a year investment returns, you’d have just over £7,400 in your investment pot, or almost £11,700 after 20 years. The figures*** show how investing little and often can really add up."

If remembering to invest £25 each month sounds like a hassle, AJ Bell’s regular investing service automates it. AJ Bell doesn’t charge a dealing fee for regular investments, so there’s no transaction fee each month. Regular investing can also help smooth out some of the market’s ups and downs, an effect known as ‘pound-cost averaging’.

Keep educating yourself

No matter how small your investment, it’s worth learning little and often about finances, particularly if you’re considering investing more or changing the level of risk. 

AJ Bell’s Women and Investing hub on its website has plenty of useful articles for women keen to start investing, including information on getting back on track after a big holiday, protecting yourself from a partner who makes poor financial decisions and helping older parents with their investments. You can also sign up for its monthly Money Matters newsletter or listen to weekly discussions on its podcast. 

About AJ Bell

AJ Bell is one of the largest online investment platforms and stockbrokers in the UK. It launched AJ Bell Money Matters in 2021 with the aim of encouraging more women to engage with their finances and feel good about investing. The initiative campaigns for greater inclusivity in investing through podcasts, articles, events, partnerships and dedicated social media channels, all designed to make investing more accessible and encourage more women to take control of their financial futures.

*AJ Bell research: Gender Isa Gap report, 2022. 

**Conversational analysis of 5,164 Mumsnet forum posts across 297 threads, 21 September 2025 to 21 September 2026.

***These figures are illustrative and based on the assumptions stated. Actual returns could be lower or higher.