The new tax year has just begun, which makes now the perfect time to get ahead with your ISA.
Every year, we see the same pattern: people leave their ISA investments until the last minute, scrambling to meet the April deadline. But what if we told you that waiting until the end of the year could be quietly costing you thousands?
A simple shift in timing by investing now rather than later could leave you significantly better off in the long run. And the numbers speak for themselves.
The Power of Getting In Early
If you’d invested your full ISA allowance (£20,000) at the start of each tax year over the last decade, your investments could have grown to around £338,000, according to research shared by This is Money.
If you’d waited until the end of each year instead? That figure drops to £306,000.
That’s a £32,000 difference. All because of timing.
It’s the classic “early bird gets the worm” scenario, but with a serious financial twist.
“But I Don’t Have £20,000 Just Lying Around…”
Totally fair, and you’re not alone.
Most people don’t have a full lump sum ready to go every April. But there’s good news here too: investing monthly throughout the year still beats leaving it to the last minute.
Drip feeding £20,000 over 12 months (about £1,666 per month) could have grown to £314,000 over the last decade, again ahead of the last minute approach.
Plus, investing gradually helps smooth out the ups and downs of the market. So if you’re someone who feels a bit nervous about investing in one go, this can be a more comfortable (and still smart) way to go.
Why We Wait and Why It Can Backfire
Let’s face it, there are lots of reasons people delay:
- Wanting to keep money liquid in case of emergencies
- Feeling unsure about where or how to invest
- Worrying about market volatility
These are valid concerns. But here’s what’s often overlooked: money sitting in your current account, earning next to no interest, is slowly losing value thanks to inflation.
It doesn’t mean you should throw caution to the wind, but it does mean that being too cautious can come at a hidden cost.
You Don’t Have to Do It Alone
If the idea of investing feels overwhelming or a bit out of your comfort zone, you’re not alone and you don’t have to figure it out solo.
Working with an adviser (like us!) can help make sense of your options, make sure you’re investing in line with your goals, and give you peace of mind that your money is working as hard as you are.
So many of the brilliant women we work with, especially those running six figure businesses, have told us they wished they’d started sooner. But the second best time? Right now.
Start Early, Stay Ahead
Whether you’re investing a lump sum, setting up monthly contributions, or just getting started, it all counts.
And if you can start early in the tax year? Even better.
Let this be the year you stop leaving it to the last minute and start giving your money the head start it deserves.
Want to talk through the best way to use your ISA allowance this year?
Let’s have a chat, Book a call and we’ll walk you through your options.
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