Before you invest
Before putting money into investments, make sure you have: an emergency fund of at least £1,000; no high-interest debt (credit cards and overdrafts should be paid off first); and a basic understanding of what you are buying.
Where to start
Open a Stocks and Shares ISA. The ISA wrapper means that any growth or dividends are tax-free. Most major platforms — Vanguard, Freetrade, AJ Bell Dodl, Hargreaves Lansdown — have low or no minimums and accept monthly contributions of as little as £25.
What to buy
For most beginners, a global index fund is the right starting point. These funds hold thousands of companies across many countries, providing instant diversification at ongoing charges of around 0.2-0.25% per year.
The importance of consistency
The real compounding benefit comes from continuing to add money regularly. Even £50 per month over 20 years, at an average 7% annual return, grows significantly. The habit matters more than the starting amount.