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If you’ve always wanted to start investing but held back because you didn’t know enough, you’re not alone. A common reason people avoid investing is a lack of understanding about the available options. 31% say a lack of knowledge about the wide range of suitable investment products is a major barrier.
Many also feel unsure about where to start or worry about taking on too much risk. But the truth is, investing doesn’t have to be complicated or intimidating. With the right guidance, you can start small, take it step by step, and grow your confidence along the way.
That’s why we’re launching this Beginner Investor Blog Series, to break down the basics, explain the jargon in plain English, and help you feel more confident about taking those first steps into the world of investing.
What Does Investment Mean?
Investing means using your money to buy something that you hope will grow in value or earn you money in the future.
Instead of leaving your money sitting in a savings account, where it earns little interest, investing allows you to put your money to work, whether that’s through buying shares in companies, contributing to an investment fund, or putting money into a pension plan.
Why Invest in Ireland?
If you’re wondering whether investing is worth it, the answer is yes, and here’s why:
Your Savings May Be Losing Value
With inflation rising in recent years, the money sitting in your savings account might not be keeping up. Most standard deposit accounts in Ireland earn very little interest. That means your money could be losing value over time.
Start Small, Grow Over Time
You don’t need thousands to start. Many platforms allow you to start investing with as little as €100 every month. This makes it accessible for nearly anyone with a bit of extra money each month.
Take Advantage of Compound Growth
Investing allows your money to grow over time, not just from returns, but also from earning returns on your returns. This is called compound growth, and it’s one of the most powerful tools in long-term wealth building.
You’re Investing in Your Future Goals
Whether you’re saving for a home, your children’s education, or early retirement, investing can help you reach those long-term goals faster than relying on savings alone.
Investing isn’t just about numbers—it’s about freedom and flexibility.
Here are just a few reasons people in Ireland choose to invest:
- Saving for a home deposit
- Building a college fund for their children
- Preparing for early retirement
- Supplementing State Pension income
- Building a travel or career break fund
- Retiring in another country
Are Irish People Investing?
According to a 2023 Banking & Payments Federation Ireland (BPFI) survey, around one in three Irish adults has some form of investment (excluding pensions or their own home).
The survey also found that men are more likely to invest than women, with 44% of men holding investments compared to just 26% of women.
While younger people often turn to online sources or friends for guidance, traditional advice still plays a significant role, with 38% of investors using financial advisors or brokers, and 35% consulting banks or investment firms when making decisions.
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Investment vs Saving: What’s the Difference?
Most people still choose to save rather than invest. According to the Central Bank, Irish households had over €208 billion in savings in bank accounts at the end of 2024. That’s a lot more than what’s put into things like shares, funds, or other investments. More money keeps going into savings every month, meaning that while some people are investing, saving is still the more popular and comfortable choice for most.
It’s important to understand that both saving and investing play a role in your financial life, but knowing the difference between them can help you make better decisions. Whether you should save or invest depends on your goals, timeline, and comfort with risk.
Saving
Saving means putting your money in a safe place, such as a bank or credit union. It’s easy to access and ideal for short-term needs, such as summer holidays, emergencies, or back-to-school expenses.
However, savings usually earn very low interest, often less than inflation, so your money might lose value over time.
Investing
Investing involves using your money to purchase assets, such as stocks, funds, or bonds, to grow it over time. It comes with more risk, as values can fluctuate, but it also offers higher potential returns, especially over the long term (five years or more).
Savings vs. Investing
What You Should Know & Do Before You Start Investing
Understand Your Current Financial Situation
Take a good look at your income and expenses to see if you’re living within your means. Are you spending more than you earn, or do you have a little left over each month? Tracking your monthly budget helps you see clearly what you can afford to invest without putting pressure on your everyday finances.
Clear High-Interest Debt First
Before you think about investing, it’s a smart move to clear any high-interest debt first, like credit cards or personal loans. These types of debt often cost more in interest than you’d earn from an investment, meaning you’re likely to lose more than you gain.
Paying off high-interest debt not only saves you money but also puts you in a stronger position to invest with confidence and peace of mind.
Build an Emergency Fund
Before you invest, it’s a good idea to build an emergency fund. Try to save enough to cover 3–6 months of essential expenses, like rent, bills, and groceries. Keep this money in a savings account that’s easy to access.
That way, if something unexpected happens, like your car breaks down or you lose your job, you won’t have to dip into your investments or sell at the wrong time. An emergency fund gives you a safety net and helps you invest with more confidence.
Set Clear Investment Goals
Before you start investing, it’s important to set clear goals. Ask yourself what you’re investing for, is it retirement, buying a home, your child’s education, or simply growing your money over time?
Knowing your “why” will help shape your investment strategy, how much risk you’re comfortable with, and how long you should plan to leave your money invested. Clear goals give your investments direction and help you make smarter choices along the way.
Know Your Timeframe
It’s essential to understand your timeframe before investing. Investing works best when you’re thinking long-term, ideally five years or more. This gives your money time to grow and recover from any short-term market fluctuations.
However, if you know you’ll need the money sooner, such as for a holiday or a house deposit within the next year or two, saving is usually the safer option. Matching your investment choices to your timeline helps reduce risk and keeps your plans on track.
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Understand the Risks
Remember that every investment involves some risk. The value of what you invest in can rise or fall, and there’s no promise of making a profit. That’s why investing works best for long-term goals, giving your money more time to recover from market ups and downs.
When you understand the risks, you’re better prepared to make wise decisions and stay calm during market changes, rather than reacting out of fear.
Learn the Basics of How Investing Works
Before diving in, take some time to learn the basics of how investing works. Get familiar with common types of investments like funds, shares, ETFs, and bonds, and understand what makes each one different.
It also helps to learn key terms such as diversification (spreading your money to lower risk), risk tolerance (how comfortable you are with ups and downs), and compound growth (how your money can grow over time). A little knowledge goes a long way in helping you feel more confident and make smarter choices with your money.
Choose Where and How You’ll Invest
When you’re ready to start investing, think about where and how you want to do it. You can invest through a bank, broker or pension provider.
A broker can be especially helpful because they work with a range of providers and products, giving you access to more tailored options based on your goals, risk tolerance, and financial needs. This flexibility can make it easier to build an investment strategy that truly works for you.
Start Small and Be Consistent
You don’t need a lot of money to start investing; you can begin with as little as €100. Starting small takes the pressure off and helps you get comfortable with how investing works.
The key is to be consistent, making regular monthly contributions can really add up over time. It’s a simple way to build momentum, form a good habit, and take advantage of long-term growth without needing a big upfront amount.
Investment Terms You Should Know
Volatility – How much the value of an investment goes up and down.
Diversification – Spreading your money across different investments to reduce risk.
Compound Growth – Earning returns on your returns over time.
Portfolio – The total collection of all your investments.
Return on Investment (ROI) – How much profit (or loss) you make, shown as a percentage.
Dividends – Profits that some companies pay to shareholders.
Risk Tolerance – How comfortable you are with the chance of losing money.
Fund – A pooled investment managed by professionals, often made up of many companies.
ETF (Exchange-Traded Fund) – A fund that tracks a group of investments and trades like a stock.
Exit Tax – A 41% tax in Ireland on profits from certain funds or insurance-based investments.
Capital Gains Tax (CGT) – A 33% tax on profits from selling shares, property, or other assets.
Lump Sum – Investing a large amount of money all at once.
Regular Contributions – Investing smaller amounts monthly, consistently over time.
Time Horizon – How long you plan to leave your money invested.
Asset Allocation – The mix of different types of investments in your portfolio.
Management Fee – A charge for having your money professionally managed.
Pension Investment – Investing through a pension plan, with tax benefits in Ireland.
ESG Investing – Investing in companies that follow ethical or sustainable practices.
Broker – The company or website you use to buy and manage investments.
Not sure where to begin? We’ll help you every step of the way!
Get a Savings & Investments Quote
Whether you’re just getting started or it’s time to review your existing investments, we’re here to help. At LowQuotes, we offer personalised savings and investment solutions tailored to your goals, budget, and comfort level.
Ready to make your money work harder for you? Get a free quote today and take the first step towards a stronger financial future.
Our next Beginner Investor Blog Series post will dive into compound growth—how your money can grow faster over time. Stay tuned!
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