Learn to invest in 2026: Simple tips to grow your money

Summary of CommBank's Five Investing Steps for Beginners

CommBank's Personal Finance Expert Jess Irvine walks through five practical steps designed to build confidence for anyone considering investing for the first time in 2026. The video addresses common hesitations and knowledge gaps that prevent people from taking action, offering a structured approach that strips away unnecessary complexity. Rather than focusing on get-rich-quick schemes or advanced trading techniques, the content centers on foundational concepts that apply to most investing journeys.

The tutorial covers essential building blocks: understanding how inflation affects your money over time, recognizing different asset classes available to investors, learning how to manage risk appropriately for your situation, and understanding the fees that can eat into returns. By the end, viewers should feel equipped to move from the "I want to start investing" mindset to actually taking those first concrete steps.

Key Concepts Covered in This Investing Guide

• Inflation erodes purchasing power, making growth through investing important for long-term financial health
• Asset classes—the different types of investments available—each carry different risk and return characteristics
• Risk management means choosing investments that match your timeline and comfort level, not avoiding risk entirely
• Fees and costs directly reduce your net returns, so understanding what you're paying matters
• Building investing confidence requires understanding basics before committing money
• Starting small and learning gradually is a valid approach for new investors

Why Learning to Invest Early in the Year Matters

Making 2026 the year you start investing gives you a full twelve months to begin building wealth through compound growth—the longer your money has to work, the more time it has to grow. The video's timing reflects a practical reality: New Year resolutions offer natural momentum and a clear mental checkpoint. Beyond motivation, understanding investing fundamentals now prevents costly mistakes later and removes the paralysis that stops many people from ever beginning. Whether you have £500 or £5,000 to invest, learning the basics first creates a foundation for better decision-making and reduces the anxiety that often surrounds money matters.

Frequently Asked Questions About Starting to Invest

Do I need a lot of money to start investing?

The video emphasizes that investing is accessible to everyone. You don't need a large lump sum; many people begin with modest amounts and add regularly over time. Starting early with small contributions can be more powerful than waiting for a large amount due to compound growth.

What is an asset class and why does it matter?

Asset classes are categories of investments—such as shares, bonds, property, or cash—that behave differently under various market conditions. Understanding the range of asset classes available helps you build a balanced approach rather than putting all your money in one type of investment.

How does inflation connect to investing?

Inflation means prices rise over time, reducing what your money can buy. If you keep cash in a savings account earning very little interest, inflation erodes its value. Investing strategically can help your money grow faster than inflation, preserving and building your purchasing power.

What role do fees play in investing returns?

Fees are costs charged by fund managers, platforms, or advisers. Even small percentage fees compound over decades, significantly reducing your final returns. Being aware of what you pay and choosing cost-effective options protects your wealth-building efforts.

How do I know what level of risk is right for me?

Risk tolerance depends on factors like how long until you need the money, your financial stability, and your comfort with ups and downs in value. The video guides you toward matching your investments to your personal timeline and circumstances rather than adopting a one-size-fits-all approach.