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How to Learn About Investing Online - for Free

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Earning money is difficult enough. Looking after it and making it grow is another story. If you want to be financially independent, or even have any hope of having enough savings to fund your retirement, you need to educate yourself about the basics of saving and investing.

Fortunately, there are now hundreds of free, online resources to learn about money, investing, financial planning and how to be smart with your money.

At the most basic level, you should know how to budget and make sure you spend less than you earn so that you can save part of your salary. The Money Advice Service is a good place to start if you want to start tracking your expenses and learning how to save and cut costs. Those who want to go all the way and learn about online trading also have plenty of resources available to them. Most online trading platforms, like IG, offer substantial investor education sections which can get you started. Further resources for beginners can be found on a variety of websites, including Babypips and Investopedia.

You can even learn about complex financial theory by doing courses in quantitative finance, statistics and portfolio management at Coursera. These are university-level courses offered by top universities, including Harvard and The University Of London. And, yes, they are free to attend virtually, often offering the option to pay a nominal fee to earn a certificate of completion, for those who wish to have one. If you have an ISA, you'd be wise to read about all the ins and outs of these savings vehicles too, at least on the HMRC website or a reliable newspaper guide. An ISA is one of the best ways to save, as your investment is tax-free.

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Even if you have a pension fund managed by a large institution or you have a financial advisor, it's worth learning about investments. Ultimately you are responsible for your own finances, and financial education is the first step in taking responsibility.

People are living longer which means we have to save enough to fund longer and longer retirements. In the old days, a pension paid out a fixed amount for as long as a pensioner lived. These days a pension fund is a form of savings account, and whatever you have when you retire has to last you as long as you live. So, you really need to be able to work out how much you will need when you retire, and then you need to work out how you can get to that number. That requires knowing how much you need to save, and what investment returns your savings can realistically generate. The size of the lump sum you save depends on three factors: the amount you save every month, the length of time you save for, and the investment returns your savings generate. You will have very little control over investment returns, but you can decide when to start saving and how much you save every month.

The time to start learning about money is today. That's not a sales pitch - remember, you can learn everything you need to know about personal finance for free. It's just a matter of deciding to do so and getting started.