Jasmine Birtles
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5 Things You Need to Do Before You Start Investing
Ruby Layram
5th Nov 2025
Investing is one of the best ways to grow your money, but before you dive in, it’s important to make sure your financial foundations are solid.
Think of it like building a house- you wouldn’t start decorating before laying the bricks!
Here are five smart money moves to make before you start investing that will set you up for a solid financial future.
1. Pay Off High-Interest Debt
If you’ve got credit card debt or loans with high interest rates, it’s best to tackle those first.
Why? Because the interest you’re paying on debt is probably higher than the returns you’d make from investing.
For example, if your credit card charges 20% interest, that’s a guaranteed loss.
By paying it off, you’re giving yourself an instant return and freeing up money to invest later.
2. Build an Emergency Fund
Before investing, make sure you’ve got a safety net in place.
Life has a way of throwing surprises at us, car repairs, medical bills, or even job changes. And an emergency fund is a great way to make sure that you are able to handle these things!
Aim to save 3–6 months’ worth of essential expenses in an easy-access savings account.
That way, if something unexpected happens, you won’t need to sell your investments (especially during a market dip).
3. Budget Your Salary
Once your debts are under control and your emergency fund is set, take a good look at your monthly spending.
A simple budget helps you see where your money’s going, and how much you can realistically invest.
You can use the 50/30/20 rule as a guide:
- 50% on needs (bills, rent, groceries)
- 30% on wants (fun stuff!)
- 20% on savings and investing
Knowing your numbers gives you confidence and control, two things every good investor needs.
4. Understand How Investing Works
Before you put any money in the market, spend some time learning the basics.
Understand key ideas like:
- The difference between stocks, bonds, and funds
- How risk and reward work together
- Why time in the market beats timing the market
You don’t need to be an expert, just get comfortable with the essentials.
There are plenty of free guides to help you get started.
5. Research the Best Investment Platform
Finally, choose where you’ll invest.
Look for a platform that’s:
- Regulated and trustworthy
- Low in fees (because fees quietly eat into returns)
- Easy to use and offers tools to track your progress
Most UK investors start with platforms like Vanguard, Hargreaves Lansdown, or Freetrade, but the right one depends on your goals and budget.
Take a look at the best investment platforms in the UK to compare our top choices.
Ready to Begin?
Once you’ve got your debt under control, your safety net set up, and your budget in order, you’re ready to start investing with confidence.
Remember, investing isn’t about getting rich overnight. It’s about building steady, sustainable wealth over time.
Do you want to learn more about investing? To keep on top of the latest developments in the wider investing sphere sign up to the fortnightly MoneyMagpie Investing Newsletter. It’s free and you can unsubscribe at any time.
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. Companies listed above are not necessarily endorsed by Money Magpie. When investing your capital is at risk.
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