01 1024x768MC_EduCation 01 1024x768MC_EduCation 01 1024x768MC_EduCation

New to Investing: 4 easy steps to get started

Saxo Be Invested

Saxo Group

Don’t let getting started overwhelm you

Investing can feel overwhelming and this has prevented many from starting. You're probably reading this article because you are interested in learning more about investing but you don’t know where to start. Well, remember the first time you tried to ride a bicycle, your first swimming lesson, your first presentation at work; it probably felt a bit daunting but you managed. It’s the same with investing which can be broken down in manageable steps. So let's look at 4 easy steps to get started

Step 1: Figure out how much you should invest

How much money you should invest depends on how much money you have. So first you need to figure out what your financial situation is and it starts with taking a close look at your income and expenses. It’s always a good idea to take a look at your budget. How much money you make and how much money you spend

A budget is an estimate of your income and expenses. Your income is usually your salary but can also include other items like property rental income. When it comes to expenses, start with what you absolutely need to spend aka fixed expenses. These expenses are things like rent or mortgage payments, transportation costs, food, utilities, health care, etc. Then look at other expenses such as clothing, eating out or entertainment. These expenses aren’t necessary and are known as variable expenses. Be honest about those and if you can and if you want, consider cutting down on some of your variable expenses so you have more income left over. 

The whole point here is to understand how much money is coming in and how much money is going out. Whatever is left will then determine your ability to save and invest. The key here is, you should not invest money that is needed to cover your expenses, both fixed and variable expenses. You should only invest what is left over after covering your expenses.

Step 2: Think about your goals

setting goals is not essential – many investors start without having any goals in mind- it is nonetheless an important step as it helps provide structure, direction and a purpose. Goals can help you stay focused and motivated and act as a roadmap guiding sound financial decisions.

Goals can be anything, for example, paying for a round the world vacation, buying a house, planning for retirement, etc. Goals can be short-term, medium-term or long-term and this will in turn determine the type of investments you should go into. For example, stocks are riskier than bonds and are better suited for long-term goals than short-term goals.

Step 3: Open and fund a brokerage account

A brokerage 
account is needed to buy and sell securities such as stocks, bonds, mutual funds and ETFs. Those transactions can’t take place in a regular bank account that is used to deposit/withdraw funds and pay bills. It is important to compare brokers before opening an account and pay particular attention to things like the fees the broker charges, the minimum account size, the broker’s reputation and whether the broker is registered.

Once the account is opened, it is then time to fund it, which means to transfer funds from your bank account to your brokerage account. Only then are you ready to make your 1st investment.

Step 4: Selecting investments

If you are new to investment, mutual funds and ETFs are an easy way to get started. These products which are baskets of securities such as stocks and bonds, provide instant diversification. The advantage of using those products is that you don’t have to think about which security to buy, that choice is made by teams of professionals who are also responsible for monitoring and rebalancing the funds they manage.

You could also choose to buy individual securities. This method is more complex and requires more time than investing in funds. To do it properly, you need to be able to research companies and have an understanding of companies’ fundamentals and financials ratios. You should also ensure that you build a diversified portfolio, investing in multiple instruments across asset classes, sectors, geographies, etc. It is recommended to invest in between 20-30 stocks to avoid over-concentration.

Many brokers nowadays provide screening tools that allow you to filter and search for stocks and funds based on pre-defined criteria such as asset class, region, sector, industry, risk, return, sustainability rating, market cap, etc. Make sure to use such tools to narrow down your search.

A third option is to rely entirely on a professional, working with a financial advisor that will, based on your financial situation, time horizon and risk appetite, help you devise a financial plan and recommends specific investments.


Even though investing requires some work on your part, it’s not that complicated and is worth the effort as it can help you build wealth overtime and help you achieve your financial goals.

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • 350x200 peter

    Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • 350x200 althea

    Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • 350x200 peter

    Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • 350x200 charu (1)

    FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • 350x200 ole

    Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15

Contact Saxo

Select region


Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.