How much to invest

How much to invest

By CIRCA5000 TeamBack to Mission Control

Investment principles • 2 min read

How much to invest

Starting small is better than not starting. Try not to delay your investment as you will miss out on potential compounding magic.

Most first-time investors don’t start out with a large cash pile that they are looking to invest. So starting out by putting a small amount aside each month makes sense. 


Before getting started, it’s super important to have some savings stashed away. Experts recommend setting aside three to six months of your living costs. So this means your share of the rent or mortgage, any bills, and other expenses such as food or toiletries. 

The best investors have a rainy day fund - the last thing you want to do is sell your investment portfolio before it’s ready. You could miss out on some great returns and even get back less than you put in. 


Once you have set aside any cash you might need it is time to put anything left to work, however small it is. Investing little and often is the key. And as we’ve already covered, when it comes to investing, time is your best friend!

Everybody is different, but £50 or more each month could be a sensible way to get started. By the end of twelve months, this would give you an investment pot of £600+ and plenty of opportunities to grow your wealth… But if you can’t afford that, even as little as £5 a month is better than nothing.

You can also use our Projections Calculator to plan how much you want to save each month. 


Starting early gives you a longer time period for compounding to work, earning returns on your returns. The earlier you start the better. For example if an 18 year old paid £100 into an account earning 5% interest per year (0.42% per month) and did nothing else, they would have turned into £1,043 by the time they retired (at 65).

If they continued to invest £100 a month until the age of 65, that amount jumps to £167,493.   

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