How to start investing and grow your wealth

Over the long-term investing in the stock market has proven to be the best way to beat inflation and grow your wealth.

But how do you know when the time is right to start? What are the things to consider when working out what investments might suit you? And do you need to wait until you are wealthy before you become an investor?

In this first of two special This is Money podcasts, Simon Lambert is joined by Rob Morgan, of Charles Stanley Direct, to help listeners through the investing maze and give them an easy to understand guide to getting started investing

The most recent edition of the longstanding Barclays Equity Gilt report showed that investing in the UK stock market has delivered an average annual above inflation return of 5.3 per cent over the past 50 years, whereas cash has returned 1 per cent.

But investing is not without its risks.

You must be prepared to potentially lose money and may need to ride out market crashes, as we have seen in the coronavirus crisis.

However, another thing that the crisis has thrown up is more people saving money, as they cut back on spending. A This is Money poll showed 71 per cent of readers said that lockdown had left them with more spare money to save.

So, if you have a rainy day pot of cash stashed away and want to start investing the money you have beyond that, where do you get started?

Alternatively, if you are already an investor and want to improve your portfolio, or watch out for the traps that eat into your wealth, what can you do?

On this podcast, Simon and Rob look at those questions and more.

Plus, download the second episode of the two-part series in a week's time when they discuss how to use your investments to improve the world and make a profit – as the pair explore the world of socially responsible investing.