How much would you need to invest to reach your goal?
Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.

With investing, you establish a goal and invest in a Portfolio over the long term in an account such as a Stocks & Shares ISA or Pension.
The sooner you start, the longer you have to grow your money, so even if you can only invest a small amount you are as well as getting started today.
You can get an idea of how much you’ll need to invest to reach your goal by using an investment calculator such as the True Potential Investor ‘See what your investment could be worth’ calculator.
Simply decide your goal amount and year you want to achieve this, then work out a monthly amount you want to invest and how long for, adjusting the sliders until you have a plan that works for you. It really does come down to what best suits your circumstances, for example maybe you can’t afford to invest a lot, but you do have lots of time, so you are able to invest over many decades to achieve your goal. Or maybe you want to get to your goal sooner, so you budget to put more money towards your investment each month and consequently get to your goal sooner. Even if you can’t decide upon the perfect plan right now, the best thing to do is get started.
Beyond your first investment, you need to think about how much you can afford to invest going forward. Successful investors stay disciplined towards their goal, so it could be worth getting into a routine of investing a set amount each month. Alternatively, some investors prefer to invest in a lump sum.
To calculate how much you can afford to invest, consider your income and expenses priorities. The first part to come out of your income should be your bills and living expenses such as groceries. What’s left over is your disposable income, and from this you should portion off your investment. Try “paying yourself first”, by taking your investment out of your disposable income before you get going on leisure spending. This is “paying yourself first” as that money then has the potential to come back to you in the future as a greater value through growth in your investment.
With this in mind, it could be a good time to reflect if your financial priorities are in order. We are all guilty of spending on impulse when we don’t really need to, for example how many coffee shops in a month do you end up going into instead of just getting a drink at home or the office? Over a year, you could save hundreds of pounds with small budget changes such as this. Invested over the long term those hundreds could become thousands in a diversified portfolio which grows over time.
By taking a holistic view of your financial comings and goings, you’ll have a good idea of how much you can regularly contribute towards your investment goal. No matter what you can afford, you can get started.
With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. Past performance is not a guide to future performance. Tax rules can change at any time. This blog is not personal financial advice.