Investment calculator

Begin by deciding on your goals, like saving for retirement, a home, or future income. Build an emergency fund first, so you're not forced to sell investments in a downturn if you need cash. Learn the basics of investing, including risk, diversification, and the amount of time you should invest for (normally more than five years). Start with simple, low-cost options like index funds or exchange-traded funds (ETFs), which spread your money across many assets.

Open an account with a trusted platform and use a tax-effiicient account like a stocks and shares ISA or self-invested personal pension (SIPP). Begin with small, regular contributions. Don’t try to time the market and be ready to ride out dips. Instead focus on long-term growth and consistent investing.

We have a guide to beginning investing here.

Choosing to save or invest depends on your financial goals and timeframe. If you need access to money within the next few years, for a holiday, emergency fund, or house deposit, then saving in a high-interest account is safer. Your money is accessible and is currently protected up to £85,000 by the Financial Services Compensation Scheme (FSCS) per person per banking group. Returns may be smaller than investing, over the long term.

If your goal is longer-term, like retirement or growing wealth over a decade or more, investing usually offers the potential for better returns. While markets can go up and down, they tend to grow over time. Your money is at risk with investing, and you could get back less than you’ve paid in. One approach is do both. So, save for short-term needs and invest for long-term goals. This balance helps manage risk and opportunity, but it is worth understanding the financial compensation limits and compensation rules with investments. We have more information to help you decide on saving or investing here.