One of the best ways to reach your investment goals soonerLog in to set up in minutes
Many people think that you need to have a large pot of money saved to become an investor. In fact you can get started with a regular contribution of just £50 a month. 'If you 'drip feed' into the markets you will average out the highs and lows of the stock market throughout the year, for smoother returns.
If you can afford to save just under £2 a day – that’s £50 a month – you can set up a direct debit which will automatically top up your account on a specified day each month. This is also a great way to impose some discipline on savings, especially if this direct debit is set up to coincide with payday.
There are lots of reasons why regular investing makes sense and can help you on your investment journey. Watch the video to find out why.
The stock market isn’t always a smooth ride but investing regularly each month allows you to build up your investments and can help to smooth out market fluctuations over time.
For example, let’s say you have £1,200 to invest. We’ll compare buying £1,200 worth of ABC company shares in January against investing £100 per month over the whole year:
As you can see in this example, although there are share price fluctuations, investing regularly has helped to smooth them out because you buy more shares when the price is low and fewer when the price is high. Please note that this is only an example and the share price may not always work to your advantage.