A regular investment is a great start – here’s how to make it work harder

Setting up a regular investment is one of the smartest financial decisions you can make.

Whether you're investing £50, £200 or £500 a month, making regular contributions helps you build wealth over time and removes the temptation to try to guess when markets will rise or fall.

But there’s one mistake many investors make: they set up a monthly Direct Debit and never revisit it.

So, while your investments may be growing, the amount you're contributing isn't. What felt like the right amount when you first set up your Direct Debit may not be the right amount five or 10 years later, particularly if your income has increased in that time.

Why it's worth reviewing your contributions

When you first start investing, your chosen contribution amount should fit comfortably within your budget.

But your circumstances won't necessarily stay the same. Over time, you may receive pay rises or change jobs, giving you more flexibility in your finances.

Inflation is another important consideration. Prices tend to rise over time, which means a fixed monthly contribution gradually becomes less significant in real terms. For example, something that cost £100 in 2016 would cost around £140 today¹. A contribution that felt meaningful 10 years ago may not go as far towards helping you achieve your goals today.

It's worth thinking of your monthly investment as something that should evolve alongside your income and goals, rather than a figure that stays fixed forever.

Small increases can make a big difference

Many people assume they need to make large changes to see meaningful results. In reality, even small increases can have a powerful effect over time.

Let's look at two investors who both start investing £200 a month.

• Investor A keeps their contribution at £200 a month for 20 years.

• Investor B increases their contribution by 2% each year, helping it keep pace with inflation.

Assuming their investments grow at 5% a year after fees, here's what happens after 20 years.

The power of increasing your contributions

Notes: This hypothetical scenario is for illustrative purposes only and doesn’t represent a particular investment or its expected returns. It assumes annual returns of 5% after fees. Balances reflect the value at the end of each period.

Source: Vanguard calculations.

By increasing contributions gradually, the second investor ends up with around £14,000 more after 20 years.

What's striking is how small those increases are. In the second year, the monthly contribution rises from £200 to just £204. By year 20, it’s around £290 a month. Yet those modest increases add up to around £14,000 in additional wealth.

While investors often focus on market performance, the amount you contribute has the biggest impact on how much wealth you ultimately build.

Turn pay rises into investing opportunities

One of the easiest times to increase your contributions is when you receive a pay rise.

For example, if your salary rises by 4% and you increase your monthly investment by 2%, you’re still keeping some of that extra income while directing part of it towards your future goals.

Because the increase comes from money you weren't previously receiving, it can feel easier than finding extra money within your existing budget.

Over time, this approach can help ensure your investments keep pace with your earnings, rather than becoming a smaller and smaller proportion of your income.

Make it automatic

An easy way to save more is to take emotion and decision-making out of the process.

You could:

• increase your monthly investment by a fixed percentage each year

• raise contributions after a pay rise or bonus

• review your budget annually to see if you can afford to invest more

Small changes made consistently can be surprisingly powerful.

The key is to start

If you’re already investing regularly, you’re doing something many people never get around to doing.

The next step isn’t necessarily making a huge jump in contributions. Instead, it's getting into the habit of reviewing what you're investing and increasing it when your circumstances allow.

Because when it comes to long-term investing, it's not just about starting early. It's also about making sure your contributions keep pace with your life.

How to set up or amend a regular payment with Vanguard

At Vanguard, you can set up or amend a regular payment by logging into your account on our website or in our app.

Read our step-by-step instructions on setting up a regular payment and editing a regular payment.

¹ Source: Bank of England inflation calculator, June 2026.

Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Any projections should be regarded as hypothetical in nature and do not reflect or guarantee future results.

Important information

Vanguard only gives information on products and services and does not give investment advice based on individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of the product(s) described, please contact your financial adviser.

This is designed for use by, and is directed only at, persons resident in the UK.

The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information does not constitute legal, tax, or investment advice. You must not, therefore, rely on it when making any investment decisions.

Issued by Vanguard Asset Management Limited, which is authorised and regulated in the UK by the Financial Conduct Authority.

© 2026 Vanguard Asset Management Limited. All rights reserved.

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