The good news? It’s never too early to begin investing. The even better news? It’s usually never too late either.
Investing can seem very much like one of those “future you” challenges — a ‘grown-up’ step to take once you earn more money, pay off debts, buy a home and start thinking about how you might build wealth as you get older.
But the reality is the best time to start investing is usually much earlier than you might think. Even small amounts invested consistently over the years can grow into big sums over time thanks to ‘compounding’. And if you’re starting later in life? That can be fine too.
While younger investors have the advantage of time, older beginners often have higher incomes and clearer financial goals. Nobody would expect a rookie teenager to win the Ballon d’Or in his first-ever season, and investing works the same way.
Humble beginnings can turn into something impressive across the years, with enough time and consistency.
So whether you’re 22 or 52, investing is less about perfect timing - and more about simply getting started and then staying in the market.
Disclaimer: eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Terms and Conditions apply.
Key summary
- Start as early as possible: If you begin your investment journey in your 20s, it allows time to act as a booster, potentially turning small monthly contributions into considerable wealth.
- Harness the power of compounding: Reinvest your gains and you can see your returns earn their own returns over time.
- Your risk appetite can change with age: Younger investors can generally afford higher-risk assets like stocks because they have decades to recover from market fluctuations.
- It’s never too late: No matter if you’re in your 50s/60s, starting today can be better than not starting at all, but a more focused strategy is required.
The biggest investing advantage is time, not money
It’s often assumed that successful investors start with huge amounts of money.
But typically that’s not the case - rather it’s time spent invested in the stock markets that’s usually far more important.
Quite simply, the earlier you begin investing, the longer your money has to grow.
This is because of what’s called compounding — where your returns begin generating their own returns over the years.
Imagine compound interest as a football academy whose focus is on churning out future star players and teams.
At first, the early results might seem a bit thin on the ground - a promising teenager on the wing, a decent prospect in defence, a talented keeper in reserve.
But over the seasons, these young players all begin to improve drastically and gain experience with the first team.
Soon their value rockets and they create success of their own - eventually, the academy begins to produce winning teams thanks to the early investment generating new rewards.
With investing, someone who invests £100 a month from age 20 could end up with significantly more by retirement than someone who starts at 35 investing the exact same amount.
This isn’t typically because they invested more money overall, but because their investments have had an extra 15 years to grow.
This is why financial experts often say ‘time in the market’ matters more than timing the market, as - despite frequent stock market turbulence - the world’s economies tend to keep growing and become richer.
Trying to predict the perfect moment to invest is incredibly difficult — even professional investors struggle to do it.
Starting small and staying consistent usually beats waiting for the “perfect” moment that never arrives, like strikers who prefer to take any chance to score a goal rather than wait for the ideal moment to hit the ball sweetly.
Don’t have much cash? You can start small anyway
One of the biggest myths about investing is that it’s only for the wealthy.
Thanks to apps and online investment platforms, investing is now far more accessible for all. You can start investing with as little as £10 a month.
This approach is often called “drip feeding” or “pound cost averaging” — regularly investing small sums each month over time instead of waiting until you have a large lump sum.
Drip feeding has several advantages. First, it makes investing feel manageable rather than intimidating. Second, it helps smooth out the ups and downs of the market.
When prices fall, your regular contribution can buy more of each investment; when prices rise, the value of existing investments increases.
More importantly, it builds something vital - consistency.
Even investing the cost of a few coffees each week can help develop a valuable long-term habit.
The key is not necessarily how much you start with, but whether you continue.
For beginners, simple investment apps and online platforms can make the process feel much less overwhelming.
And many of these platforms offer ready-made portfolios designed for different levels of risk, meaning you don’t need to become a stock market expert overnight.
Disclaimer: eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Terms and Conditions apply.
Your workplace pension may well be the best place to begin
If you’re a beginner and not sure where to start investing, a workplace pension is often the simplest answer, if you have access to one.
Many employers automatically enrol workers into pension schemes and ‘match’ or contribute money alongside your own payments - an effective instant boost to your retirement savings. In some cases, turning down a workplace pension can mean missing out on what is essentially free money from your employer.
Pensions also usually benefit from tax relief in the UK, which means the government adds money to your contributions too.
Over decades, all these combined contributions and investment returns can grow into a substantial retirement fund.
Younger workers sometimes ignore pensions because - understandably - retirement feels a long, long way off.
Yet your twenties and thirties are actually some of the most powerful years for pension investing because of compounding.
That said, pensions aren’t the only option. Many people also invest in a general investment account for medium-term goals such as buying a home or building wealth for family.
For beginners, though, a workplace pension is often the simplest and smartest first step.
How your investment strategy can change with age
It’s often said there’s no single “correct” way to invest.
Your age, personal goals and financial responsibilities will all have an impact on how much risk you may be comfortable taking.
In your 20s: Focus on growth (time to play attacking football)
Your twenties are many people’s highest-risk, highest-growth years.
Because retirement is still decades away, younger investors can often afford to ride out market dips and focus more heavily on growth investments such as stocks and shares.
At this stage, consistency matters more than perfection. Even modest monthly investing can make a major difference later on.
If you were able to, a useful starting goal could be investing around 10–15% of your income, if possible, but any amount is better than nothing.
In your 30s: Aim to build momentum (switch from a promising player to a serious contender)
By your thirties, life often becomes more financially demanding. Mortgages, rent, childcare and rising bills can all compete with your investing goals.
However, your earnings may well begin to rise during this decade, making it easier to put larger amounts away.
It’s also often the stage where investors begin balancing growth with a little more stability. While shares still play a major role, it can be timely to add lower-risk investments for extra protection.
If possible, it helps to increase contributions gradually whenever your salary rises rather than waiting for a perfect financial moment.
In your 40s: Time to balance growth AND protection (protecting a lead in the game)
Your forties are often peak earning years, but they can also herald greater financial pressure.
At this stage, retirement can suddenly feel much closer, so many investors start paying more attention to protecting the wealth they’ve already built.
Growth investments still matter because retirement could still be 20 years away, but diversification becomes increasingly important.
Many financial planners suggest you regularly check whether your retirement savings are on track with your expectations during this decade. If not, you’ll still have time to make changes rather than simply hope everything will be all right in the end.
In your 50s and 60s: A keen eye on retirement (a veteran who can still set up and score crucial goals)
As retirement begins to loom, investment priorities usually begin shifting away from aggressive growth toward stability and income.
This doesn’t mean abandoning investing, though.
Instead, protecting your money from major market swings often becomes more important than chasing the biggest returns.
Investors in their fifties and sixties may gradually move some money into steadier assets while still keeping part of their portfolio invested for growth.
And importantly, it is absolutely not “too late” to begin.
Starting later may require higher contributions or a more focused strategy, but investing in your fifties is usually still far better than never investing at all.
Disclaimer: eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Terms and Conditions apply.
Build a strong financial base before you invest
Investing is important, but it shouldn’t come before your basic financial stability.
Before putting serious money into investments, it’s usually a sensible move to
- Pay off high-interest debt, such as credit cards
- Build an emergency fund covering three to six months of daily expenses and bills
- Create a manageable monthly budget
- Avoid investing money you may need urgently
It’s also vital to be aware that markets rise and fall. Investments can go down as well as up, especially in the short term.
The investors who tend to succeed long term are often not those who constantly chase trends or panic during market dips.
Instead, they’re usually the ones who stay patient, keep investing regularly, and allow time to do most of the heavy lifting.
It’s often said that with investing, the hardest part usually isn’t choosing the perfect investment - it’s simply getting started and then sticking with it.