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Investing tips for those under 30

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While it can be easy to assume that investing is only for the rich, the truth is, anyone can invest. Instead of spending every penny they earn, investors are making sure that their money is working for them, and the world of investing can offer huge possibilities to anyone with an internet connection and a few bucks to get started.

Investing doesn’t need to be complicated, and can actually be relatively simple. Even if you’re not great at math, the sooner you get started and begin putting your money away for a rainy day (and allowing it to grow), the sooner you can begin preparing for your future.

Sure, your parents may be investors themselves, but it’s important to remember that each stage of life has a different investment strategy, so while your parents have their own strategy, that won’t necessarily be the most beneficial for you now.

The first thing you’ll need to do is to understand the basics of both saving and investing. luckily you have thousands of resources at your fingertips, meaning that learning about the big world of investing has never been easier. TP Investor has teamed up with the Open University, so even those with little knowledge and experience can learn all about personal finance for free.

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One thing to consider is what you’re actually investing for. Even if you have low earnings and high outgoings, you’ll need to begin thinking about where your spare cash will be going. Most people under 30 will usually need to choose between saving for their pension or a property, and usually won’t have enough cash to do both of these things.

There are products already on the market that are aimed at people who are hoping to save for a deposit in order to buy a property, and accounts like Stocks & Shares ISA can also be valuable, since the cash invested can then be used towards a financial goal- potentially giving you a higher rate of return compared to Cash ISAs. True Potential Investor also gives you the opportunity to open an account for only £50, and you can then top up your investment (even if you only have £1 to spare) whenever you want.

This means that the Stocks and Shares ISA is obtainable for anyone, regardless of your income level.

While you may want to buy a house shortly, you’ll also need to keep in mind that you won’t want to completely disregard planning for your pension entirely. Since we’re all living for longer than ever, you’ll have plenty of years in your retirement, and the earlier you begin saving, the better the quality of life you’ll have.

How much should you save? Take your age, cut it in half, and you’ll have the percentage of your salary which should be saved each month for retirement. While this can seem impossible, that percentage will only increase with each year that you don’t begin saving.

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