Investing money is a great way to increase your overall wealth and to save up a larger sum for your future. This is because investments often give a good rate of interest that grows with inflation – far better than if your money was sitting in a standard bank account without earning anything. If you’re good at investing, you’ll need to spread your assets across various investments to stand the greatest chance of getting a good return. But are you ready to invest? And is investing right for you?

For many people, investing money as soon as possible gives them the best chance to make the most return on their investments. Investing any sum of money should be carefully considered. If you’re wondering whether investing is the right decision for you, speaking to a financial advisor can be a great option, as they can look through your assets and help you decide which investment products are right for you so that you can maximise return.

If you’re looking for advice on investments and savings products, Financial Advisor UK can help. We offer a national network of fully FCA-registered and approved professionals that you can be matched with to ensure you get the best professional advice on investments, along with the best products available. Let us compare the market for you to find the right investment products for your needs.

Here are a few signs that you may be ready to take the plunge and start your investment journey…

You have no debts that carry high levels of interest

If you decide to invest in stocks and shares, you can expect a general return of around 7%, making it a great investment in the long-term. While this is a a good interest rate, it isn’t as high as some rates of interest on debts such as payday loans or credit cards. You want to make sure that the rate of interest you earn on your investments isn’t less than what you are currently paying on any loans you may have, or you’ll still be losing money overall. This is why it’s a great idea to clear off any debts that carry a high level of interest before you start investing. This way, your money pot can grow when you start investing, and you won’t need to continue to take chunks of cash out of your overall funds to pay off debts.

You have an emergency nest-egg saved up

If you are disciplined enough to have substantial savings saved up, you’ve already shown that you are a good saver. You might be an even better investor! If you’re going to invest cash in a variety of investments, particularly in stocks and shares, it’s also a good idea to have a sum of money to fall back on, as markets can go up as well as down. If you invest money, you are investing it for the long-term, and will need to leave it for at least five years to mature and weather any market storms. You shouldn’t invest any money in markets if you need frequent access to it. Ideally, you should leave your investment for between 5-10 years for it to stand the best chance of growing. As you may also have expenses that you’ll need to cover during this time, you should always have a nest-egg saved up that you can easily access should you require the funds. You don’t want to have to take money out of your investment in the case of an emergency, as this will greatly affect your returns.

The emergency fund you have saved up should cover you for between three and six months of living expenses, including mortgage and the covering of major bills and other expenses such as food.

You have some spare cash that you are able to invest

If you are financially living month to month, and are unable to put aside any money once you have paid your bills and regular outgoings, you may want to reconsider whether investments are right for you. You don’t want to be in a situation where you have money tied up in investments that you’d effectively lose if you accessed them. That said, you can invest very small amounts of £25 or more little and often. This can be done on a trading platform website for a small fee, helping you to slowly grow your investment portfolio without needing a lump sum.

Of course, when it comes to investments, the more capital you have to invest, the more likely it is that you will experience gains on that investment. If you have some spare cash saved away that isn’t earning much interest, investing it may be an easy way to grow that capital.

You have a general idea of how to invest

Do you know how the stock market works? Have you read articles on how to invest? Or looked into various investment products before? If so, you may be ready to start investing. As an example, you should really know how stocks and shares work, what a mutual fund is, and the basics of the various types of assets and products you can invest in. Selecting individual stocks is often too high-risk and complicated for first-time investors, which is why it is good to speak to a financial advisor where possible so that you can discuss how to expand your financial portfolio for the best chance of returns. This is important, because if you have one asset that is underperforming, your other assets won’t be affected as a result. You should also be aware of the kinds of fees you’d be charged for in terms of your investments, and also how they will make money in the long-term. If you’re unsure about any of this, you might not be ready to invest, or you may need to speak to one of Financial Advisor UK’s professional advisors, who can help you determine whether or not investing is right for you.