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December brings with it all sorts of spending needs. So not everyone will be thinking about whether they ought to use some spare money to start investing.
But if not December, then when?
January can seem like an obvious time, but that means waiting until next year (even if it is only weeks away).
The reality is that, even once Christmas is over, there are always spending obligations of one sort or another in life. When thinking about that, it can be all too easy never actually to start investing, no matter what good intentions one may have.
Even on a limited budget, it can be worthwhile to start buying shares. Here is how someone could do that now, for a fiver a day.
Getting into good habits
Is it worth investing with just a few pounds a day?
I think so.
Relatively small amounts of money soon add up. £5 a day would tot up to over £1,800 in a year. Keep that going for a few years and one could be looking at a five-figure portfolio.
Getting into a regular investment habit can also be helpful, in my view.
It may start small, but over time someone who begins with £5 a day may hit their stride and decide to increase the size of their regular investment.
Choosing how to invest
Of course, it also makes sense to try and form healthy habits from day one.
So before someone starts investing, I think they ought to get ready.
Partly that means getting to grips with important stock market concepts like how to value shares and using diversification as a form of risk management.
It also includes choosing the right investment platform, as each comes with their own structure and that includes the cost structure too. When starting with £5 a day, minimum charges could soon eat up quite a bit of the money so it is important to make the right choice.
Common approaches include share-dealing accounts, Stocks and Shares ISAs, SIPPs, and trading apps.
Finding shares to buy
Having got ready to buy, what shares should someone buy when they actually start investing?
That will depend on the individual investor. Each has their own area of competence, investing objectives, and risk tolerance.
But one share I think investors should consider is FTSE 100 asset manager M&G (LSE: MNG).
The company operates in a business area that is relatively simple to understand, though can be difficult to do in practice.
It is a large area with resilient demand, meaning M&G can potentially do very well – but also that it faces significant competition.
M&G has some competitive advantages that I think can help set it apart from rivals. The brand is well-known and the business has a customer base stretching to over 5m not only in the UK but as far afield as Asia, Europe, and the Americas.
One risk is that M&G could see customers pull more money out than they put in, hurting profits. Performance has been inconsistent in this regard across recent years, though the first half of 2025 did see a net inflow of funds.
M&G offers a dividend yield of 7.3% — well over double the FTSE 100 average. Dividends are never guaranteed but the company aims to grow its dividend per share annually.
