Everyone And Everyone Can Invest In The UK
If I told you that you could start investing today from as little as £1 and start watching it potentially grow in value over the next 12 months, would you say yes? If you could have your money automatically be invested into the stock market with little effort on your part would you? Well anyone and everyone in the UK can invest in the stock market today, with loads of options available to make it simple and easy for you to get started.
In the UK the majority of people in full-time employment are actually invested in the stock market via means of a Workplace Pension. There is an article coming on Workplace Pensions and the things your employer or pension provider doesn’t tell you, look out for that soon!
Modern Robo Investing In The UK
These days there are many ways to get into the stock market, with most of them taking out all of the hard work for you by constantly looking after your investments to ensure that they are placed correctly based on market growth and your goals. Lets start with that. Robo investing apps in the UK look to place your deposits into the stock market based on your risk, economical values and long term goals. In the UK these kinds of services come from places such as Moneybox, Nutmeg, Tickr and Wealthify. All of these services look to help you invest in the stock market even if you have no idea what a stock/share, bond, commodity or fund is. The idea is that you don’t need to know any of it and your money still works for you, because money really is a tool. Today we are going to be showcasing probably one of the most popular auto-investing apps in the UK which I personally use myself, Moneybox
Easy Investing With Moneybox
Moneybox is the provider we are going to use to show you how to invest today with little effort. Other providers offer similar services with varying risk options, so do your own research into what provider is best for you and your goals. If you head to the App Store or Google Play Store and type in ‘Moneybox’ you’ll see the Moneybox app, this is the platform and it’s all on your phone making it easier to see your finances wherever you are. Moneybox does not have an online web-based portal for your laptop or PC at the time of writing and it’s just the way of the modern world. If you download the app we will get going.
Open the Moneybox app and make an account, you’ll need to fill in your details faithfully because some accounts are linked to HMRC for things such as tax-free ISA accounts or ISA bonuses. ISAs will be covered in another article in the future. ISA accounts will require your National Insurance Number when you open the account so if you already know you want to open an ISA account have that ready.
Invest Your First £1 With Moneybox
Once you’ve made an account and decided if you’re going to put your deposits into an ISA or General Investment Account it’s time to start investing! Moneybox has three different risk profiles for you to choose from Cautious, Balanced and Adventurous. Each level has a varying amount of ‘risk’ and this means that the capital you invest is invested into varying areas such as stock markets, property markets, bonds and cash. If you have no idea what these different things are don’t worry, that’s why they’re grouped into these 3 options. The app will tell you what each of these individual areas are if your interested and some even have videos explaining where your money is being invested. A new addition is the Socially Responsible Fund if you’re looking for more responsible investing
Watch Your Money Start To Grow
This is where you will see your £1 or whatever amount you invested in the Moneybox app, and this is my personal account with moneybox after depositing for a little over 2 months. I know what you’re saying, £765.15 in the account with only a +£23.15 at +3.12% however, this value is constantly going up and down with the value of the market. For example 2 weeks ago my account was at +£17.54 but a week later (last week) it was at -£13.92, it’s now back to where it is now and this is because the value of your investments are changing every working day (Monday – Friday) and is why investing is for the long term. This isn’t a short-term option and you’re looking to build your wealth over time, so don’t put more money into an investment account than you can personally afford.
As you can see my total value is split between 2 Equity funds and 1 Bond Index. This means that I have chosen to split my investments between these products using the balanced option because for me that’s my level of risk I am happy with for my investments.
Top Up Your Investments Passively
Moneybox also has another feature that helps make investing even easier than adding your capital manually, it’s called the top-up feature. If you link your bank account to the Moneybox app with the top-up feature then every time you buy a cup of coffee at your local coffee shop for £2.70, Moneybox sees your purchase and rounds it up 30p to £3. The 30p is then invested into your portfolio and Moneybox can do this for all of your purchases so you never need to even touch the deposit section of the app again.
Moneybox does this by adding up all of your round-ups for the week (Wednesday to Wednesday) and then the total for that week gets deposited from your bank account the following Monday morning. So every Monday morning you’ll have your round-ups going off to be invested and will start to grow in the background without you needing to constantly look after the numbers, easy!
I am not a professional financial advisor and you should always do your own research into investment platforms you are going to trust with your money. Make sure that the company you choose meets your long term investment goals.