Is Investing with £100/month Worth It?
Many people think investing is only for the wealthy, but even modest monthly contributions like £100 per month can make a huge difference over time. Thanks to the power of compound growth, starting small is often better than waiting to invest a lump sum.
How Much Can £100/Month Grow Over Time?
Let’s assume you invest £100 each month into a diversified index fund with an average 7% annual return (illustrative, after typical fees). Real-world returns will vary from year to year. Here's what it could look like:
| Years | Total Invested | Estimated Value (7% growth) |
|---|---|---|
| 5 | £6,000 | £7,200 |
| 10 | £12,000 | £17,400 |
| 20 | £24,000 | £52,000 |
| 30 | £36,000 | £121,000 |
Illustration only. Actual returns vary and are not guaranteed.
This is the magic of compound interest. Your money earns returns, and those returns also earn returns over time.
Best Ways to Invest £100/Month in the UK
Even with a small monthly amount, you have several great investment options:
- Stocks & Shares ISA: Invest tax-free up to £20,000 per year. Ideal for long-term passive investing.
- Index Funds or ETFs: Low-cost, diversified funds tracking markets like the FTSE 100 or S&P 500. See our Index Funds vs ETFs guide for more.
- Robo-Advisors: Platforms like Nutmeg or Moneyfarm build and manage a portfolio for you automatically.
- DIY Investing: Use brokers like Freetrade or Trading 212 to choose your own funds or shares.
Can You Really Build Wealth This Way?
Yes, but it takes time and consistency. Most people underestimate how powerful small, repeated actions can be. The key is to:
- Start early
- Stay invested long term
- Avoid withdrawing when markets dip
- Choose low-fee investments
Even if you never increase the £100 per month, you could still retire with a significant pot — especially if you start in your 20s or 30s.
Tips for New Investors
- Set up a direct debit so you invest automatically every month
- Use an ISA to avoid tax on gains or dividends
- As the popular saying goes, "time in the market beats timing the market" — don’t try to time the market, stay consistent with your deposits
- Choose broad, global index funds to reduce risk
Compound Interest Calculator
Try our free compound interest calculator to visualise how saving small amounts each month could grow over time with different contributions and rates.
Common Questions
Is £100 per month enough to invest?
Absolutely. It’s more important to start than to start big. Many investment platforms allow contributions from £1 to £25 per month.
What if I want to invest more later?
You can increase your contributions any time. The sooner you do, the more compound growth you’ll benefit from.
Is it better to save or invest?
It depends on your goals. For short-term needs or emergencies, saving is better. For long-term goals (5+ years), investing is usually best.
Final Thoughts
Investing £100 per month is not only worth it, it’s one of the smartest long-term financial habits you can build. It may not feel like much at first, but with time, patience, and compound interest, it can grow into something significant.