How Much Should I Invest?
Start With What You Can Afford
The right amount to invest is whatever you can afford consistently without stress. Financial advisors often recommend investing 10-20% of your income, but even £50-£100 per month can build significant wealth over time. The key is consistency, not the initial amount.
The 50/30/20 Rule
50% for needs: Rent, food, utilities, transport—essentials you can't avoid.
30% for wants: Entertainment, dining out, hobbies—things that make life enjoyable.
20% for savings & investing: Emergency fund first (3-6 months expenses), then investments.
If 20% feels impossible, start with 5-10%. The habit matters more than the amount.
The Numbers: Small Amounts Add Up
| Monthly Investment | Annual Total | 10 Years (10% return) | 20 Years (10% return) |
|---|---|---|---|
| £50 | £600 | ~£10,000 | ~£38,000 |
| £100 | £1,200 | ~£20,000 | ~£76,000 |
| £200 | £2,400 | ~£41,000 | ~£152,000 |
| £500 | £6,000 | ~£102,000 | ~£381,000 |
Even £50/month grows to £38,000 in 20 years. £200/month builds £152,000. The amount matters, but consistency matters more.
Why This Matters for You
You don't need to be rich to start investing—you need to start investing to become rich. The "right" amount is whatever you can invest consistently without sacrificing your emergency fund or essential expenses. Start small, increase gradually as your income grows.
Book a consultation and we'll help you:
- Calculate a realistic monthly investment amount based on your income
- Set up automatic contributions so investing becomes effortless
- Plan for gradual increases as your salary grows
- Balance investing with emergency savings and debt repayment
Important Investment Warning
This content is for educational purposes only and does not constitute financial advice. We are not FCA-regulated financial advisers. Investments can go down as well as up, and you may lose some or all of your capital. Past performance does not guarantee future results.