Jasmine Birtles
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How Much Should You Be Investing Each Month? (Real Examples by Salary)
Ruby Layram
6th Aug 2025
Let’s cut to the chase: you don’t need to earn a fortune to start investing. But one of the biggest questions we get at MoneyMagpie Invest is, “How much should I actually be putting away every month?”
The truth? There’s no one-size-fits-all answer. But there are some helpful rules of thumb, and below we’ll walk you through exactly how much you could (and maybe should) be investing, based on your salary, lifestyle, and goals.
First, What Are You Investing For?
Before we get into numbers, ask yourself:
- Are you building long-term wealth (e.g. for retirement)?
- Saving up for a house?
- Hoping to work less in the future?
- Just trying not to rely on your job forever?
Knowing your why makes it much easier to figure out your how much.
General Rule: Invest 10–20% of Your Take-Home Pay
If you’re earning a monthly salary and want to keep things simple, aim to invest 10–20% of your net income (after tax). This can go into a mix of:
- A Stocks & Shares ISA
- A pension (SIPP)
- A workplace scheme
- A trading account, if you’re comfortable with higher risk
Can’t manage 10% right now? No stress. Start with what you can, and build from there.
If I Was a New Investor, I Would Use eToro!
If I was just starting out with investing, I would use eToro (in fact, I did!). eToro is a UK-based investment platform that offers a really great range of tools that make getting started easier.
In particular, the platform has a ‘copy trading’ feature which basically lets you copy the investments of verified experts. This takes away the stress of building your own strategy and allows you to automate the process of building your portfolio.
Real Examples by Salary (UK 2025)
Here’s a quick breakdown to give you a feel for the numbers:
| Take-Home Pay (Monthly) | 10% Investment | 15% Investment | 20% Investment |
|---|---|---|---|
| £1,800 | £180 | £270 | £360 |
| £2,000 | £200 | £300 | £400 |
| £2,500 | £250 | £375 | £500 |
| £3,000 | £300 | £450 | £600 |
| £3,500 | £350 | £525 | £700 |
| £4,000 | £400 | £600 | £800 |
| £5,000 | £500 | £750 | £1,000 |
See? You don’t need £10K/month to be an investor.
But What’s Comfortable for YOU?
Forget the formulas for a second. Here’s how to work out what you can realistically invest:
- Track your spending for one month.
- What’s going out in essentials (rent, bills, groceries)?
- What are you spending on lifestyle (eating out, travel, gym, etc.)?
- Figure out your true “leftover” amount.
- Subtract essential + lifestyle spending from your take-home pay.
- This leftover is your “flex zone”, where investing can come from.
- Set a sustainable percentage.
- If you’ve got £300 leftover each month, maybe invest £150.
- Don’t over-stretch. You want to build a habit that lasts.
Quick Investing Rule of Thumb
If you want a very rough guide based on goals:
| Goal | Suggested % of Net Pay |
|---|---|
| Just getting started | 5%–10% |
| Building wealth long-term | 10%–15% |
| Aggressive early retirement | 20%–30%+ |
Where Should That Money Go?
Once you know how much you can invest, the next step is to decide where to put it. Here’s a starter strategy:
- Workplace pension: Try to max out employer match, it’s free money.
- Stocks & Shares ISA: For tax-free long-term investing (think index funds, ETFs).
- General investing account: For extra funds if you’ve maxed your ISA.
The key is to build a portfolio that is diversified, this will protect you from market volatility and short-term dips.
Final Thoughts
A lot of people are under the false impression that you need to be investing £1000+ per month to build wealth. But this simply isn’t true. As my £10 to £10K challenge shows, you can build a significant portfolio from as little as £50 per month invested consistently over time.
If you found this post helpful, make sure to send it to friends and family!
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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