How much should I invest?

How Much Should I Invest?

Many people assume that you need lots of spare cash to start investing, but the good news is you don’t. In fact, most first-time investors don’t begin with a large cash pile to put away; it makes sense to start by putting a small amount aside each month.

Starting small is better than not starting at all. It’s best to try not to delay your investments, as you may miss out on compounding magic.

First Things First: Build an Emergency Fund

3-6 months living expenses

Before getting started, it’s important that you have some savings stashed away. Experts recommend saving enough to cover your living costs for three to six months. This includes your share of the rent or mortgage, as well as any bills and other expenses such as food and 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, because you could miss out on some great returns and may even get back less than you put in.

If you’d like to know more about what to expect when investing for the first time, take a look at our guide.

Put Your Money to Work

Once you’ve set aside the cash you need, it’s time to put the remainder to work – however small it is. Investing little and often is key, especially if you’re new to investing. And remember, time is your friend: a long-term investment strategy is likely to offer better returns down the line.

How Much Should I Invest Each Month?

Everybody is different, but investing £50 or more each month could be a sensible way for you to get started. By the end of the twelfth month, this would give you an investment pot of £600+ and plenty of opportunities to grow your wealth. But if you can’t afford that, putting away as little as £5 a month is better than not investing at all.

The main thing to remember is never to invest more than you can afford to lose, given the risks involved with investing. If you’re in debt or have few savings, it’s probably not the best time for you to start investing. But once you’ve set aside some savings and done some thorough research to determine your investment goals, risk tolerance and any associated costs with investing in stocks and funds, you’ll be able to take advantage of their wealth-growing potential.

With a CIRCA5000 investment, you can use the Projections Calculator in the app to plan how much you want to save each month. You can see what this looks like in the graphic below.

Projection calculator
Projection calculator

At CIRCA5000, the minimum top-up you can make to any account is £5, and this applies to one-off top-ups, monthly top-ups and round-ups. If your round-ups in a week are less than £5, then the balance will roll over to the following week until the minimum amount is £5.

There is no maximum top-up amount for our GIA accounts, although tax is applicable on your investments. You can invest up to £20,000 per year with an ISA, in line with the ISA rules.

The Benefits of Investing Regularly

One of the main reasons that people invest little and often, is that it’s less risky. What’s more, it allows you to build up a larger sum over time whilst managing your finances effectively.

Investing early gives you a longer time period for compounding to work, earning returns on your returns. So the earlier you start, the better chance you have to grow your wealth.

If an 18 year old paid £100 into an account earning 5% interest per year (0.42% per month) and did nothing else, it 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 would increase to £167,493.


You can invest sustainably with a CIRCA5000 investment account. Learn more by visiting our support page, or by using the chat feature in our app.

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Important information - Investments can go down in value as well as up, so you can get back less than you invest. The information on this page isn't investment advice. If you're not sure if an investment is right for you, please seek advice. Tax rules can change and depend on individual circumstances.