How do I start investing today to aim to build a £1.3m portfolio from scratch

The best time to start investing is today.

Whether I have £500 or £50,000, it's not about the amount but how wisely I allocate it. The key to success is to start early and stay consistent.

Investing £200 a month over 40 years, with an average annual return of 10%, can grow to £1.3m. A 10% annual return is a reasonable indicator based on the historical performance of S&P 500America's most followed index of its 500 largest companies.

Average cost per pound

When I first started investing, I found pound cost averaging to be the most efficient method for me. I invest a small amount of money available from each paycheck in the top companies every month, regardless of their current value.

As long as these businesses have strong long-term prospects, I keep buying over the years. It is a simple and reliable way to build wealth.

One main principle I adhere to is diversity. I spread my investments across different businesses to avoid having all my money tied up in one place, reducing the risk of any one company going down.

Getting started

It couldn't be easier to get started. First, I need a Stocks and Shares ISA or a shares trading account. My favorite provider is Interactive Investor.

Then, I need a way to find a good investment. Thank you, The Motley Fool UK this is covered, with a list of services and writers that identify the best investments every day.

One company I see is a solid long-term investment to measure the cost of the pound Games Workshop (LSE:GAW). This seemingly modest developer of wargame miniatures has grown 1,600% at an impressive price over the past 10 years. In addition, it offers a good dividend yield of 3.5%, putting cash in my pocket every year. Remember, however, that management can reduce the dividend if market conditions call for it.

Analysts expect the company's earnings growth to slow over the next few years. But this may be a good time to buy, as current valuations look reasonable. If earnings growth picks up again, the stock could see significant gains, and by getting in early, I could be in a good position to gain.

However, every investment comes with risks. Games Workshop is already well established in Western markets, so the company is now looking overseas for growth. Any challenges it faces in growing into new regions could limit future share price gains in the long term.

Staying the course

I have found that one of the best ways to generate strong portfolio returns is to be part of a strong community of investors. This is one of the main reasons I enjoy The Motley Fool UK.

Above all, investing is a lifelong skill. It takes time, patience, and perseverance to build wealth. Building a successful portfolio is far from a get-rich-quick scheme, which is why it works.

As I said, if I invested £200 a month from the start, I could grow a portfolio worth £1.3m over 40 years, assuming an annual return of 10%. Wealth is not about luck, it is about knowledge, preparation, and time spent in the market.