Ok so lets talk about investments. I am frequently inundated with questions from family and friends asking how and what they should invest their money in. So lets break it down…

To Invest or Not To Invest

No one persons attitude towards investments is ever the same. If you are a risk seeker like me and hate money sitting around in a virtually zero percent interest bearing account then you’d grasp with two hands at the opportunity for financial freedom. Alternatively you may be apprehensive about putting your money into ‘some thing’ which by the time you wake up the next morning may have completely chopped your money in half! Or perhaps you’re unsure on how to invest, what to invest in and what it truly means to be an investor. If you are any of the above persons please read on!

Ok so what does an investor look like? My younger brother made me LOL when he said that investors resemble some highly intelligent man or woman in a sharp suit reading the Financial Times on the Jubilee line en-route to Canary Wharf. The reality is investors can look just like me and you without the need of a PhD in Economics or the nice suit. Even better you can become an investor in your PJs sitting on your front couch!

Principles of Investing

According to the Oxford dictionary to invest means to put (money) into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit. You can also invest your time into something for a later reward. I like to think of investing as making your money work for you. Basically committing some of your hard earned money in expectation for profit at a later date. For example buying the new pair of exclusive yeezy’s and selling it for a higher price when all supply is gone and the demand is still ferocious coz’ you just got to get those new yeezy’s. This sounds like one of my friends so with that same example he is an investor.

So the next question is how do I know what the price will be in the future? Well you could study historical trends and do your online research all day and night. For yeezy’s this could be not so bad but for other financial investments it can be very time consuming and difficult to interpret the wrath of information that is actually useful.

So I recommend before you begin investing you should consider these 3 factors:

Risk Appetite

Risk appetite can defined as your feeling toward putting your money on the line with the possibility that something can go wrong. Your risk appetite will depend on your personal circumstances such as dependents and other commitments. Generally speaking the fewer obligations and the younger you are, the more risk you can take on.


Investing is definitely for the long term. If someone promises you a definite return of lets say four times your investment in a very short period then be very very wary. It is very unrealistic and probably high risk.


How much of your monthly salary or hard earned savings are you willing to set aside for investing? There is no guarantee that you will get all your original money back at all. But remember “Scared money, don’t make no money”. Use my financial plan template to help in setting aside an appropriate amount based on your circumstance.

How To Invest

Below are 3 ways on how to invest your money:

1. Managed Portfolio – Robo Advisors 

These new tech services require you to complete a few questions about your risk appetite, financial goals and how much money you have to invest. Based on this an algorithm (usually based on artificial intelligence and machine learning) allocates your money into a portfolio and gives you a range of how much money you could make throughout the investment period.

Good bits

  • User experience – the interface and language used is intuitive and simple to understand for beginners
  • You are able to check on your investments 24/7 through mobile apps
  • Can be used to fulfil yearly ISA entitlement so any earnings are without paying income tax

Not so good

  • Withdrawing early will be costly as your money is usually out of reach for a set time.

Check out these players operating in this space:





2. Peer-to-Peer (P2P)

P2P lending platforms work by bringing together people who have money and want to lend it for a return and people who need to borrow money and willing to pay for it. This is traditionally what a bank does but P2P lending allows you to lend directly to individuals, sole traders and small businesses without the need of going through a bank. The really good thing about these platforms over a bank is that they are mutually beneficial for lenders who get a higher rate of return and the borrowers who pay less in interest.

Check out these players operating in this space:


Funding Circle

Good bits

  • Higher interest rates than traditional bank savings accounts
  • You can invest tax free by using your ISA allowance or by specifically using your Innovative ISA

Not so good

  • Not all P2P is covered by the FSCS scheme (government scheme where your financial loss would be compensated up to £85k). Authorised companies include Crowd2Fund and Crowdstacker.

3. Do-It-Yourself Investing

My favourite method! The main ways of doing this is through equities where you own a share of a company and bonds where a company borrows your money and promises to pay your money back plus interest.

If your employer has an employee share scheme, then I would recommend to take up this offer straight away as the shares are usually heavily discounted as a form of a company perk. I am currently part of my company 3 year share scheme which I started in 2015 so provided the share price keeps on rising then at time of maturity in 2018 then I am looking at a good profit when I decide to sell.

You can invest in individual companies based on personal affiliation, whats in the news or through personal financial advice. Investing in only one company or one sector is quite risky though since your investment will be dependant on anything that happens to that company or that industry. Therefore I cant stress enough the importance to diversify by investing in firms from different industries, a fund or an Index like the FTSE 100 or the Dow Jones.

Good bits

  • Building your own expertise

Not so good

  • Lots of time to research may be necessary
  • You may need to pay for qualified financial advice

Check out these players operating in this space:


Hargreaves Lansdown

Next Steps

So thats my 3 factors to consider when investing. If you are new to the game here are some tips for you:

  1. Beware of investment or pyramid schemes. Most but not all are scams and if it sounds just too good to be true then it usually is. Do your research and make the call for yourself.
  2. No risk no return. Put simply the greater the return, the more risk you’ll have to accept. Everyone is different but it might be worth to have some low risk and high risk investments to diversify the risk.
  3. Don’t stress. Investments go up and down, so be patient. Slow and steady wins the race.
  4. If you haven’t got enough for the initial deposit to start investing, think about creating a financial plan to get you there.

Hope you enjoyed the read, and don’t forget to leave a comment and share with your friends if you liked this post. Please do not hesitate to email me at for any specific questions.

You can also get in touch on social media or email me for any of my consultancy services such as one-one financial coaching or for financial seminars and workshops. Also stay tuned for some other articles I will be writing about investments!


This content should not be considered qualified financial advice and MrMillionaireMindset accepts no liability for any financial losses.


  1. Kingsley
    October 2, 2017 / 12:04 pm

    Great article! now i know where to put my money.

    • Mr Millionaire Mindset
      November 6, 2017 / 8:36 pm

      Thanks! Yes the options are plenty based on your risk appetite!

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