Do You Know the 4 MUSTs to Start Investing?

Hello Stoic Investors,

If I asked you what the 4 things you absolutely must do to start investing are, what would you say?

Some of you might already have a pretty good idea. Others might have zero clue — and that’s totally fine!

In fact, this is exactly what inspired this newsletter, after I read this post on Reddit:

So, to answer their question as best as possible, here are what I consider the 4 MUSTs — the four absolutely necessary steps everyone should know before starting their investment journey:

1. Build your safety net before you invest

Before you invest a single pound, you need what we call an Emergency Fund.

That means putting aside enough money to cover 3 to 6 months of your basic expenses, like rent, food, and bills — just in case you lose your job or your car breaks down.

Where should you keep this money?

In a high-interest savings account.

Let me explain that:

A savings account is a place where you store money, separate from your main current account.

A high-interest account means the bank pays you a little bit of money — called “interest” — just for keeping your savings there. It’s like a reward for not spending it.

The interest helps it grow slowly and safely — without taking risks.

Once your emergency fund is sorted, that’s when you can think about investing.

2. Understand what investing really is

Investing means using your money to buy things that can grow in value over time.

Instead of just keeping your money in a savings account, you’re buying pieces of businesses, or funds, or property — things that (hopefully) become worth more in the future.

Most people invest in the stock market. That’s where companies like Apple, Google, and Tesco let you buy a small piece of their business — called a share or stock.

For example, if you buy £100 of Apple shares, and Apple grows, your £100 might become £120, or £150, or more over the years.

But investing is not gambling — it’s long-term.

Yes, prices go up and down, but history shows that if you invest in strong, global companies and wait patiently (think 10+ years), you’re very likely to make a good return. 

It’s normal to feel worried about losing money — but keeping all your money in cash for the next 30 years is also risky, because inflation (prices rising every year) slowly eats your money’s value.

That’s why smart investing actually protects your future.

3. Learn to invest using safe online resources

A lot of websites or influencers make big promises… but they just want your money. 

Here are a few trustworthy, safe and free resources that will help you not only when you’re just starting out, but also as you become more experienced (I still use them myself after many years!):

• JustETF: This website helps you explore ETFs — which are simple investment funds (I’ll explain later). You can search, compare, and understand how they work.
• Morningstar: A well-known research site where you can look up investment funds and stocks, check their past performance, risk level, and what companies are inside.
• Investopedia Simulator: This is like a video game for investing. You can buy and sell “pretend” investments with fake money — so you can learn how things work without the risk of losing real money.

If something looks too good to be true (like “double your money in a week”), it’s probably a scam. 

Real investing is boring, slow, and smart.

4. Use ETFs to start your investment journey

When you’re wondering how to start investing safely, it’s important to know that there’s no such thing as zero risk.

But some ways of investing are much less risky than others — especially if you do it slowly and sensibly.

One of the safest and simplest ways to get started is to invest in ETFs (Exchange-Traded Funds).

An ETF is like a basket full of companies.

For example, instead of buying just one share of Apple, an ETF might include 1,500 different companies — Apple, Microsoft, Amazon, Nestlé, Toyota, and more.

If one company goes down, the others can help balance it out. This is called diversification, and it’s key to reducing risk.

Here are some examples of the most well-known ETFs you might have heard of: 

• SWDA – iShares MSCI World: tracks stocks from 23 developed countries worldwide
• VUSA – Vanguard S&P 500: tracks the performance of the 500 largest companies in the U.S.

These are passive funds — they don’t try to “beat the market”, they just track it.

That means low fees, less stress, and often better long-term results.

This makes ETFs an excellent starting point.

As you become more confident, you can gradually adjust your investments to include individual stocks or other higher-risk opportunities that may offer greater potential returns. 

The hardest part is starting.

But if you read this far, you’re already ahead of 95% of people.

And just to be clear — everything I’ve shared here is general advice that can help many beginners get started.

But of course, everyone’s situation is different.

To build a proper financial plan, you’d need to look at your specific goals, how much you earn and spend, how long you want to invest for, and how comfortable you are with risk.

This is just a starting point — not a personalised plan!

So, note down these 4 MUSTs and start investing today:

1. Build your emergency fund: Save 3–6 months of expenses in a high-interest account;

2. Understand what investing really is: Invest to grow your money and protect it from inflation;

3. Learn using safe online resources: Use sites like JustETF, Morningstar, and Investopedia Simulator;

4. Use ETFs to start your investment journey: Diversify safely with simple, long-term funds.