Investing Basics for Film & TV Freelancers
You don't need to understand the stock market to benefit from it. Here's everything you actually need to know — written for a gaffer or a script supervisor, not a banker.
Why invest at all?
Savings accounts protect your money. In a good year, they might even keep pace with inflation. But investing gives your money a genuine chance to grow over time — meaningfully, not just technically. The key insight is this: it's about time in the market, not timing the market. You don't need to be clever. You need to start, and stay in.
The most important concept: compound growth
Compound growth means earning returns on top of your returns. Each year, your gains get added to the pot — and next year, that bigger pot grows too. Over time, the numbers get surprising.
Take £10,000 invested at a 7% average annual return:
Assumes 7% average annual return, no additional contributions. For illustration only.
The earlier you start, the more time compound growth has to work. Even starting with a small amount and contributing regularly makes a huge difference over a career.
The 10 best days rule
Research consistently shows that if you'd been out of the market for just the 10 best trading days over a 20-year period, you'd have roughly halved your total returns. The problem is: those best days almost always follow the worst ones. If you panic-sell during a crash, you miss the recovery. The lesson is simple — get in, stay in, and stop watching the news.
What to invest in (keep it simple)
Most people should start — and honestly stay — with index funds. Here's what that means:
Index funds
A single fund that tracks an entire market — like the global stock market or the S&P 500. Instead of betting on one company, you own a tiny slice of thousands. Low cost, diversified, and historically strong returns. This is where most people should start, and where many experienced investors stay.
Don't pick individual stocks
Until you genuinely understand what you're doing, don't try to pick winners. Most professional fund managers can't reliably beat the market — and they do this full-time.
Keep costs low
Look for funds with an OCF (Ongoing Charge Figure) under 0.25%. Fees compound just like returns do — a high-cost fund drags on your growth every single year. Many index funds charge 0.07–0.20%.
Where to invest
The what (index funds) matters less than the where. Always use tax-advantaged wrappers first:
Stocks & Shares ISA
Tax-free growth. Tax-free withdrawals. £20,000 annual allowance. First place any investment money should go — HMRC can't touch what grows inside an ISA.
Read the ISA guideSIPP (Self-Invested Personal Pension)
Especially powerful for Ltd company directors, who can make employer contributions through the company and reduce corporation tax. You get tax relief on the way in — 20% basic rate, more if you're a higher-rate taxpayer.
GIA (General Investment Account)
Once your ISA and pension allowances are maxed, a GIA is the next step. Same funds, same principles — just with capital gains tax on profits above the annual exempt amount.
How much should you invest?
Aim for at least 15% of your income going to long-term savings and investments combined — pension contributions included. If that feels impossible right now, start smaller. £100 a month invested for 30 years is worth far more than waiting until you can afford £500.
The freelancer trap
Irregular income makes it tempting to invest only when you feel flush — and stop when things are quieter. But that's exactly backwards. You end up investing at market highs and sitting out the recoveries.
Automate the transfer and forget about it. You're not trying to time anything — you're just consistently building something over time.