I’VE BEEN SCARED OF INVESTING ALL MY LIFE – HERE’S HOW I STARTED WITH £1,000 AT 31

Whenever Rachel Humphreys heard or read something about investing and saw the warning that her money could be at risk, she felt terrified and wanted to keep her finances safe.

However, the 31-year-old has recently discovered investing is not as “scary” as she thought it was and has realised that playing it “safe” was actually eroding her money.

Rachel, who lives in Wakefield, West Yorkshire, has recently embarked on her investing journey with an initial deposit of £1,000 to start her off – and now has a goal of growing her money to at least £250,000 by investing in stocks and shares.

She said: “Not many people understand investing and what to do or how to do it. I didn’t have a clue, until I started a new job just over a year ago and started working with some colleagues who were really into investing and had been for a few years.”

More than half (55 per cent) of Brits do not currently invest their money, according to the latest research from life insurance, pensions and investment company Scottish Widows.

When asked why they did not invest, apathy seemed to be a major reason, with one in three (31 per cent) saying there was nothing in particular getting in their way.

Rachel, who works in PR and marketing, explained fear was the biggest factor in her reluctance to invest and not having an understanding of what it involved.

“I did not grow up with financially savvy parents, so saving has been a priority with me because I didn’t ever want to end up in debt,” she said.

Rachel told The i Paper that the constant messages around investing telling people their capital could be at risk made her wary of it – but after talking to her investment-savvy colleagues, she realised the reality of investing was very different.

She said: “I wrongly believed that investing meant potentially risking losing all your money.

“I didn’t know anything about global index funds and having diversified investments so the risk is much lower. It is accessible for most people, but not that many people know about it.”

Index funds allow investors to put money into multiple stocks at once, decreasing the risk of volatility.

Using her newly garnered knowledge from her colleagues, Rachel began her investment journey a few months ago. She opened a stocks and shares ISA with Trading 212 with an initial deposit of £1,000 to start her off. She is now paying £100 a month into this and her plan is to not touch it for 30 years and just watch it grow.

“With investing in stocks and shares, there will be times when your money is going to go down,” she says.

Generally, investing is best done over five years or more, as this gives investments time to recover if they drop,

Rachel has also opened a cash ISA with Trading 212 with an interest rate of 3.6 per cent. She is keeping three to six months of living expenses in there for emergency situations and is also using it for DIY and holidays, topping it back up as needed.

But for now, she says investing is her priority. “Over the next year or so, I am not planning on any holidays or for any big money to be spent as I want to prioritise saving for a bit,” she said.

“I would love my career to progress and to be able to double my monthly contributions. After 20 years of investing, compounding really starts to take over, even if you only invest small amounts.

“If I invest £100 a month and then get my contributions up to £200 a month, the projections show I would be looking at over £250,000 in 30 years.

“In 30 years time, I would love to have the option to retire early if I wanted or to stick it out another five years or so. It is about having the financial freedom to make that choice.”

“I just wish I had done it 10 years ago, but there was no proper knowledge around it and investing is never really talked about unless you know who to ask.”

How to start investing

Lauren Gradys, investment product manager at Scottish Widows, shares her advice on how people can start their investment journey.

Start simple and spread your money from the start

Investing does not have to be complicated. It can be as hands-on or as hands-off as you like, depending on how much time you have and how involved you want to be.

Some people prefer a “do it for me” approach, which has become increasingly popular among providers via “ready-made investment” products. This is where experts choose and manage the investments on your behalf and these will often contain a mix of equities and bonds.

Meanwhile, those who enjoy a DIY approach will choose their own investments from a range of shares, funds, bonds, gilts and investment trusts.

Whichever route you choose, one key principle always applies: diversification. This means spreading your money across a range of investments.

Risk and reward

A quarter of people (24 per cent) say that one of their biggest barriers to investing is the fear of losing money.

It is true that growth is not guaranteed and investments can go up and down, but it is also worth remembering that investing is for the long-term, meaning your money has the chance to ride out the ups and downs of the market.

Use your ISA allowance

Choosing where you invest is just as important as choosing what you invest in. Every tax year, you can contribute up to £20,000 into one or more ISAs of your choice, which includes cash ISAs and stocks and shares ISAs.

The best part of putting your money into an ISA is that any growth in your investments, as well as any income or dividends you receive, is protected from UK tax.

It’s important to note that the amount of money you can add to a cash ISA is reducing from April 2027. However, the stocks and shares ISA limit is staying at £20,000.

Start small, stay consistent and let time do the work

You don’t need a large lump sum to start investing. Putting in small amounts regularly can make a big difference over time. The most important step is to simply get started and build the habit of investing.

One of the easiest ways to do this is to automate your contributions. This “set and forget” approach makes investing feel more manageable and helps you stay consistent.

Starting early also means your money has more time to benefit from compounding.

2026-02-15T05:49:04Z