How to avoid being one of the 88%
Here’s a stat that may — or may not — surprise you. A study found that 88% of people fail to stick to their New Year’s resolutions, with Dr Asim Shah advising that the best way to succeed is to start “by making small steps.”
When people set resolutions, financial health is usually near the top of the list. The good news? One of the simplest ways to act on that goal is also one of the easiest to maintain: regular investing.
In this feature, we look at what drives people to invest, why “time in the market” matters, and how a simple monthly habit can be well worth sticking with.
Start small, go long
You’ve probably heard the adage: the best time to start investing was yesterday, but the next best time is today. It’s popular for a reason — time in the market matters.
What motivates investors is the potential for growth. Over time, cash savings have generally made modest gains, with inflation eroding the value of money. By contrast, stocks and shares have delivered higher returns over the long term, although with periods of volatility — as the charts here illustrate.
The past is not a guarantee of future performance, but it helps to explain why people choose to invest for growth over time.
No time like the present
Right now, time is also on your side from a tax-year perspective. You have until 5 April to use your current £20,000 ISA allowance. From 6 April, a new tax year begins and your ISA allowance refreshes.
And while cash can play a role in a balanced plan, the rules around Cash ISAs are tightening for many people. From 6 April 2027, people under 65 will be able to contribute up to £12,000 a year to Cash ISAs, within the £20,000 total ISA allowance. If you’re 65 or over, you’ll still be able to contribute up to £20,000 a year to Cash ISAs.
Start as you mean to go on
Setting up regular investing is straightforward. You choose an amount that feels manageable each month, and it’s invested automatically — so you build your portfolio steadily over time, without having to make a fresh decision each month.
Even small monthly amounts can make a meaningful difference over time.
Fund your lifestyle
If you’re wondering what to invest in regularly, a simple starting point can be a fund.
Funds pool money from lots of investors to buy a diversified mix of assets — such as shares, bonds or other investments — so you’re not relying on the performance of a single company.
Unlike many of our best intentions, regular investing is one resolution that can quietly keep working in the background — and your future self might just thank you for starting small today.
