Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
23% of New Investing Accounts are Left Untouched! Here’s How to Take The First Step in Investing!
Ruby Layram
16th Feb 2025
In a recent survey conducted by DJS Research, on behalf of MoneyMagpie Invest, 23% of respondents claimed that they had deposited funds into an investing account but had not proceeded to invest.
This came as no surprise considering that only half of UK adults have invested over the last 5 years. Common obstacles to investing include a lack of knowledge, feeling intimated by the market and fear of financial loss.
It is clear that many people want to get started with investing but are stopped in their tracks by common obstacles, uncertainties and investing myths.
In this guide, I will reveal how to take those crucial first steps and what those first steps should be based on your goals.
How to Overcome Investing Obstacles and Take The First Steps
Many UK adults are aware that investing is a good way to build wealth over time, hedge against inflation and see potential returns. However, 23% of new investors will open an account only to leave it untouched.
Here are a few ways to overcome the initial barriers to investing and take those first steps.
1. Understand your goals
Investing will seem a lot less intimidating if you clearly understand your goals. It is important that you clearly define what you’re investing for, how long you want to hold your portfolio and how much growth you would ideally like to see (remember that high growth often comes with higher risk.)
To determine your investing goals, ask yourself the following questions:
- What am I investing for?
- How long would I like to hold my investments?
- Am I more concerned about growth or maintaining the value of my wealth?
- How much risk can I afford to take?
- How much money can I contribute to my portfolio each month?
2. Develop an investing strategy
Once you have clearly defined your goals, you should spend time building an investing strategy.
This will act as a set of strict guidelines that you can refer to any time you are faced with a tough investing decision.
We have a great guide on how to develop an investing strategy in 5 steps. I also recommend reaching out to a financial advisor or professional at this stage to ensure that your final strategy aligns with your goals.
3. Join a community
One of the most effective ways to overcome the initial fear of putting your money in the market is to join a community of other beginner investors.
These communities offer support, reassurance and tips based on personal experiences.
There are several ways that you can get involved with the MoneyMagpie Invest community.
4. Start small
You don’t have to invest thousands (or even hundreds) of pounds as a new investor. Instead, you can start with a small amount and gradually build up your investments over time.
Some of the best investment platforms allow you to start investing with as little as £10. Starting with the minimum amount is a great way to test the waters without putting too much money at risk.
5. Invest in a fund or ready-made portfolio
If the process of picking out stocks is a bit daunting, you can bypass this by investing in a ready-made portfolio or ETF.
eToro offers a great selection of ‘Smart Portfolios’ which are created by experts and make it possible for you to diversify your first investment without needing to spend hours researching individual investments.
ETFs are a type of passively managed fund that tracks the performance of a selection of assets, such as the FTSE100. When you invest in an ETF, your investment is spread across all of the assets that are tracked by the fund.
It’s Not About Timing The Market but Time In The Market
So, why is it so important that you take that first step after opening an investing account?
Well, the longer that you give your investment to grow, the more time they have to generate returns.
As the saying goes, it’s not about timing the market but time in the market. The sooner you make that first investment, the sooner you will be able to take advantage of market movements.
Are you interested in learning more about investing? Why not sign up to the MoneyMagpie bi-weekly Investing Newsletter? It’s free and you can unsubscribe at any time if you find it isn’t for you.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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