Experts share how beginners can start investing in 2026 from ISAs to "the bank statement method"

FINANCIAL experts have revealed how to start investing in 2026 for complete beginners.

The New Year brings with it a drive for new beginnings and that could be a drive to make better use of your money this year.

Newspage spoke to experts who have shared their advice on where to start with investing money in 2026.

From ISAs to "the bank statement method" –  there are many ways you can get going.

Anita Wright, Chartered Financial Planner at Ribble Wealth Management, warned beginners to have an emergency buffer of cash.

She added: "Make sure you have an emergency buffer so you are not forced to sell investments at the wrong time, clear any high-interest debt, and be clear on your goal and time horizon, for example 3 years versus 15 years. Because that largely determines how much volatility you can sensibly accept. 

“For most first-time investors, a broadly diversified fund, rather than a handful of shares, plus regular monthly investing is a sensible way to begin”

Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, said it all depends on when you want access to the money.

He continued: "Think about what you want this money for and when do you need it as it shapes your options. If you're looking to buy a house in the next couple of years, you probably want to keep to cash but if you've got 20 years to go to retirement and you're looking at your pension fund, you've got time to allow the markets to bounce around so you could be more aggressive and look at company shares, also known as equity. 

“You don't have to find the 'best' fund to get started but make sure it's spread across a number of geographic regions and business types. This is called diversification.”

David Belle, Founder and Trader at Fink Money, said a psychological shift needs to happen for new investors.

He added: "We have a process called the bank statement method for brand new investors. You look at your bank statement from the last 3 months. You find 3 companies you have used the most. You buy one share of each company. You then leave it for 3 months to see how it feels. 

"At the beginner stage there is a psychological shift that has to happen. You have to go from consumer to owner. Most Brits are afraid of risk, and more specifically, the risk of shares. Starting them from a place that they’re familiar with is how you can get people to understand what they’re buying and get over that anxiety of being at the whims of the market. 

“The common advice of ‘buy and index fund’ is correct, however for many it just glosses over them because they don’t even know what an index fund is. ‘Buy a part of Tesco because you shop there twice a week’ is a far easier sell.”

Pete Mugleston, Mortgage Advisor & Managing Director at Derby-based onlinemortgageadvisor.co.uk, said a Lifetime ISA could be useful.

He continued: “If you want to tie investing to a clear goal, such as saving for a first home, a stocks and shares Lifetime ISA is well worth considering. You get a 25% government bonus on contributions, and when invested in a low-cost, diversified index fund it offers the potential for steady long-term growth. 

"Just remember: LISAs are designed specifically for a house deposit or retirement, as funds can’t be accessed penalty-free until age 60 unless used to buy your first home.”

Ross Lacey, Director & Independent Financial Adviser at Rayleigh-based Fairview Financial Management, said it is best to discuss with a professional.

He added: “Speak with a financial adviser. Investing without a proper financial plan is like driving a car without knowing where you're heading. A starting point is to consider what you're investing for. 

"Money is there to be spent; either by you or the people you love and care about. If we have money to invest and save, it simply means we aren't spending it now but it will be spent at some point. This will drive how to structure investments for the future, to give the best possible chances of success.”

Kundan Bhaduri, Entrepreneur, Investor and Landlord at London-based The Kushman Group, said a Stocks and Shares ISA is a good place to start.

He continued: "In reality you don't need to be a millionaire or an economist, but you do need to understand the fundamentals before risking hard-earned money. Start with a Stocks and Shares ISA that shelters your £20,000 annual allowance from tax completely. 

"Choose an FCA-regulated platform with zero fees and thousands of investment options rather than falling for marketing gimmicks. The "bank statement method" works brilliantly for beginners who feel overwhelmed by choice. Look at your spending from the last 3 months, identify 3 companies you use most, buy one share in each, then leave them for 3 months to understand how ownership feels versus being just another customer. 

"Next, set up £100 monthly into a diversified global fund tracking 3,600 companies worldwide, which historically returns 8% annually. Only invest money you will not need for at least five years. Your future self will thank you for starting small and thinking long term rather than waiting for the perfect moment that never comes."