How to Start Investing with Little Money in 2025
Once upon a time, investing was seen as an exclusive club for the wealthy – suits, Wall Street jargon, and five-figure buy-ins. Thankfully, 2025 isn’t that time! With technology, fractional shares, and commission-free trading, investing is now open to anyone, even if you’re starting with just £10.
If you’ve been waiting for the “right time” to invest, let me be the friend who tells you the truth: the right time was yesterday. The second-best time? Today! Here’s how to start investing with little money and set yourself up for financial success.
- Start with What You Have – Even If It’s £10
You don’t need thousands to invest. Many platforms like Trading 212, Freetrade, and eToro allow you to start with as little as £1. Thanks to fractional shares, you can own a piece of big companies like Apple or Tesla without buying a full share.
Action Step: Pick an investing platform with low fees and deposit a small amount – just to get started.
2. Choose the Right Investment Type
With little money, you want investments that:
✅ Have low fees
✅ Offer diversification
✅ Can grow steadily over time
Best Options for Beginners:
• Index Funds & ETFs – These funds track the market (e.g., S&P 500) and are a great low-risk way to invest. Examples: Vanguard S&P 500 ETF (VOO), iShares Core MSCI World ETF (IWDA).
• Dividend Stocks – Some stocks pay you every quarter just for owning them. Look for companies with a strong dividend history.
• REITs (Real Estate Investment Trusts) – Want to invest in real estate without buying a house? REITs let you earn rental income without being a landlord.
Action Step: Pick one ETF or a few dividend-paying stocks and invest your first £10-£50.
3. Automate & Grow Your Portfolio
Investing small amounts consistently is more powerful than waiting until you have a lump sum. This is where Dollar-Cost Averaging (DCA) comes in – you invest a set amount regularly, no matter what the market is doing.
Apps like Trading 212 and Moneybox let you round up spare change or set up automatic investments.
Action Step: Set up a weekly or monthly automatic investment – even if it’s just £10 per week.
4. Use Tax-Advantaged Accounts (If Available)
Why give the government more money than necessary? In the UK, consider:
• Stocks & Shares ISA – Invest up to £20,000 tax-free per year.
• SIPP (Self-Invested Personal Pension) – If you want to save for retirement, the government gives you tax relief on contributions.
Action Step: Open a Stocks & Shares ISA if you’re in the UK or look for tax-advantaged accounts in your country.
5. Increase Your Investments Over Time
Starting small is great, but the goal is to increase your investments as your income grows. If you get a raise, side hustle, or unexpected cash, invest a portion of it instead of spending it all.
• Got an extra £50 this month? Invest it.
• Side hustle made £100? Invest half.
• Bonus at work? You already know what to do!
Final Thoughts: Just Start!
Investing isn’t about timing the market – it’s about time in the market. The sooner you start, the more time your money has to grow. Even if it’s just £10 today, in 10 years, you’ll be grateful you started.
So, open that app, buy your first fraction of a stock, and watch your money start working for you. Your future self will thank you!
Your Turn
Have you started investing yet? What’s stopping you? Drop a comment – I’d love to help you get started!
