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The ‘ISA Cappuccino Plan’: Why It Pays To Start Early

Picking up a cup of coffee from your favourite shop can be a great way to start the day, but if you are spending £2.50 a day, five days a week, that soon adds up. You might say that £50 a month is a small price to pay for kicking off the morning with caffeine, but if you were to put that £50 into a stocks and shares ISA, you could see some real results.

Researchers are putting this information out to encourage people to start what they are calling an ‘ISA cappuccino plan’; a simple savings plan to help you properly invest in your future. It is not just about trading your flat whites for a home-brew cafetiere though, as Emma-Lou Montgomery, Associate Director for Personal Investing at Fidelity International, explains; “We all are guilty of frittering away money without realising we are doing it, whether it is on coffees or even lunch every day. It is important to stop and think about what you are spending your money on, and identifying where you could make small changes to save some cash.”

It is just not realistic to expect everyone to have a lump sum with which to start saving into an ISA, but by depositing cash little and often, it does not take long to build up an ISA pot that can bring you some considerable interest. Emma-Lou Montgomery continues, “A monthly saving plan where you drip-feed money into your investments regularly is a great way to get the ball rolling. This approach will also mean that you benefit from a process known as pound-cost averaging; where you automatically buy more units in your investments when prices are low. The benefit is that you will be cushioning your ISA against dips in the stock market by buying a variety of prices and spreading your ongoing investments over a period of time.”

So why not think about what cash you might be able to put away with a little savvy budgeting. The earlier you get started, the better your results will be!


14 March 2019

The views expressed in this blog do not in any way constitute advice and are specific to the date noted. As time passes the facts can change and readers should consult their adviser for up to date advice on any matters covered within the blog. Invest Southwest offers an initial review, which is free of charge, however long it takes. From this we will be able to confirm how we can help and give you an opportunity to decide if you would like us to. Thereafter, we will provide you with detailed recommendations and exact costs. Please note that we promise not to levy any kind of fee unless we can demonstrate a benefit to you.

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