How to invest £50 a month: tips for people at different ages

Moving some money out of standard savings and into the stock market can offer better long-term returns, though it carries risks. You do not need to be wealthy or very young to start; even £50 a month can be worthwhile. For most people, pooled funds are preferable to buying individual shares because they spread risk and leave trading to a manager.

Before investing, build an emergency fund that would cover three to six months of essential outgoings. Decide on your investment goal, time horizon, appetite for risk and the level of return you want, Russell Mould of AJ Bell advises, because this will help you choose asset classes and a platform.

In your 20s, keep safety-first money in an instant-access cash Isa, but take advantage of time in the market with a growth portfolio if your horizon is long; a cautious fund in a stocks and shares Isa may suit withdrawals needed within three to five years.

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