MTTM Podcast Episode 554 - How to start investing & why now is the perfect time

Listen to Episode 554

In this week's episode, Andy discusses the findings of Vanguard's recent British Money Mindset report, highlighting a recent shift in the UK from saving to investing, largely driven by younger investors. He explains how new 'Targeted Support' tools from the likes of Quilter and Vanguard can give would-be investors the confidence to invest for the first time. We then take a look back at my simple 'back to basics' guide on how to start investing for the first time.

Thank you to our sponsor Interactive Investor

New customers can receive £100 in free trades when they open an Interactive Investor Trading Account before 31st July 2026. Terms & fees apply. Capital at risk. https://moneytothemasses.com/redir/ii-podcast

Support the podcast

Remember to like, subscribe and follow us on all our socials. You can also support the Money to the Masses podcast by visiting our dedicated podcast page.

Every time you use a link on the page we may earn a small amount of money for our podcast. We only use affiliate links that give you an identical (or better) deal than going direct. Thank you for being an incredible part of our community. Your support means the world to us.

Watch the video version of the podcast below:

You can also listen to other episodes and subscribe to the show by searching 'Money to the Masses' on Spotify or by using the following links:

Listen on iTunes Listen on Spotify via RSS

Support the podcast!

You can now support the Money To The Masses podcast by visiting this page when making any financial decision

Save money
Earn cashback
Exclusive offers for listeners

Latest offers and deals*

Episode 554 Podcast Summary

Vanguard's British Money Mindset Report

Summary:

We review the findings of Vanguard’s British Money Mindset report, which highlights a clear shift in the UK from saving to investing. Driven largely by Gen Z, over 1.5 million people have started their investment journey in the past two years. However, the data also reveals a significant confidence gap, with 70% of people lacking confidence in their investment knowledge. We discuss how platforms are introducing targeted support to help bridge this gap and guide everyday savers through their first investment decisions without crossing into fully regulated, costly financial advice.

Key Insights:

A surge in new investors - Around 1.5 million people in the UK have become first-time investors over the last two years, with Gen Z contributing £25 billion in new inflows.
The crypto appeal - 33% of Gen Z investors chose cryptocurrency as their first investment, compared to just 9% of Gen X and 2% of those aged 62 and over.
The confidence barrier - Despite high intent to invest (68% of savers want to start within two years), 70% of people lack confidence, and 58% feel under-informed.
The need for targeted support - Major investment platforms are launching tailored guidance services designed to help everyday consumers navigate their financial options.

The hidden cost of monthly car insurance

Summary:

We revisit a popular segment from episode 482, where I provide a comprehensive, jargon-free introduction to investing. I explain the fundamental transition from working for an income to acquiring assets that generate wealth. I cover crucial concepts such as the difference between true investing and mere speculation, the dangers of market bubbles, and the life-changing power of compound interest. Finally, I outline the importance of diversification using a practical three-year comparison of popular assets, proving that consistency, time, and simple tracker funds are the most effective tools for building long-term wealth.

Key Insights:

Investing vs. Speculating - True investing is about owning assets based on fundamentals to build long-term wealth, whereas speculating is simply placing a bet on short-term price movements.
The power of compounding - Often called the eighth wonder of the world, earning interest on your interest allows even small, regular contributions to snowball into significant wealth over decades.
Time in the market beats timing the market - As Warren Buffett advocates, staying invested over a long period is far more effective and less risky than trying to guess the perfect time to buy or sell.
Diversification manages risk - Spreading your money across different assets - or buying the entire stock market via an S&P 500 tracker - protects you from the volatility of individual companies while still providing steady growth.

Resources

Links referred to in the podcast:

Article Contents

Listen to Episode 554 Support the podcast Resources Links referred to in the podcast:

Damien helps to put you in control

Since 2010 I've been helping people with their personal finances for FREE. Every year we help over 4 million people but that's not enough. Help me help more people by sharing the site with your family, friends and colleagues.
- Damien Fahy, Founder

The material on the Money to the Masses website, 80-20 Investor, Damien’s Money MOT, MTTM AI, associated pages, channels, accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice.

You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. Leadenhall Learning (owner of Money to the Masses, 80-20 Investor, Damien’s Money MOT, MTTM AI) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions or their use of any information on this site. See full Terms & Conditions, Privacy Policy and Disclaimer.

Money to the Masses is a journalistic website and aims to provide the best personal finance guides, information, tips and tools, but we do not guarantee the accuracy of these services so be aware that you use the information at your own risk and we can't accept liability if things go wrong.

We aim to give you accurate information at the date of publication, unfortunately price and terms and conditions of products and offers can change, so double check first. Leadenhall Learning, Money to the Masses, 80-20 Investor, Damien's Money MOT, MTTM AI nor its content providers are responsible for any damages or losses arising from any use of this information. Always do your own research to ensure any products or services and right for your specific circumstances as our information focuses on rates not service.

When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results. Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested.

We do not investigate the solvency of companies mentioned on our website. We are not responsible for the content on websites that we link to.

80-20 Investor tables and graphs are derived from data supplied by Trustnet. All rights Reserved.

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use.

Leadenhall Learning Limited (trading as Money to the Masses) is an appointed representative of Wealthify Limited which is authorised and regulated by the Financial Conduct Authority. Money to the Masses acts as an appointed representative for the purpose of promoting Wealthify products and introducing customers to Wealthify.

Leadenhall Learning Limited (trading as Money to the Masses) is an Introducer Appointed Representative of Creditec Limited who is acting as a credit broker and not a lender and which is Authorised and Regulated by the Financial Conduct Authority (FRN: 972716)

As seen on:

MTTM Podcast Episode 554 – How to start investing & why now is the perfect time