Your financial slow cooker: Investing over time

Introduction

As a health professional in training or just starting out, you already understand the power of small, consistent habits - whether it’s brushing up on clinical skills, prepping meals for the week or staying on top of CPD. The same mindset can apply to your finances.

Instead of trying to ‘cook’ your investments all at once with a big lump sum, there’s a slower, steadier method: pound cost averaging. Think of it as the slow cooker of investing - low effort, consistent and designed to work quietly in the background while you focus on everything else.

What is Pound Cost Averaging?

Let’s say you’ve got £3,000 to invest. You could throw it all in the market today - like blasting your oven on high and hoping for the best. But if the market’s overheated, you might not get much for your money. And if it cools down tomorrow, you’ve already committed.

With pound cost averaging, you invest smaller amounts regularly - say £1,000 a month over three months. That way, you’re buying at different ‘temperatures - sometimes high, sometimes low - which could help reduce the average cost of your investment over time.

It’s like prepping your ingredients, setting the timer and letting the slow cooker do its thing - no need to constantly check or stir.

A quick example

You want to invest £3,000. Here’s how it could play out:

Option 1: Regular investing (pound cost averaging)

June: share price = 100p → you buy 1,000 shares
July: share price = 90p → you buy 1,111 shares
August: share price = 100p → you buy 1,000 shares

Total shares: 3,111

Value at end of August: £3,111

Option 2: Lump sum investing

June: share price = 100p → you buy 3,000 shares

Value at end of August: £3,000

In this case, the slow-and-steady approach gave you more shares - and a better result.

Important note: These examples are for illustration only and don’t reflect real market conditions. Investment charges and tax have been left out for simplicity. The value of investments can go down as well as up, meaning you might get back less than you invest.

But what if markets are rising?

If prices go up steadily (say from 100p to 110p), a lump sum investor might come out ahead by buying early. Regular investing might mean you buy fewer shares overall.

But pound cost averaging isn’t always about chasing the highest return - it’s about reducing risk and staying consistent, especially when markets are unpredictable. Like a slow cooker, it’s not about speed — it’s about reliability.

Why this matters for you

Many health professionals decide to invest big at the end of the tax year - usually around 5 April - to make the most of pension or ISA allowances. That can be a smart move, especially with tax relief on pension contributions (a £1,000 investment could effectively cost a higher-rate taxpayer just £600).

But relying solely on a last-minute lump sum can leave you exposed to whatever the markets happen to be doing at that moment. If the market’s high, you get fewer units. If it’s low, you might hesitate to invest at all.

Setting up monthly payments by direct debit is like putting your finances in the slow cooker. It spreads your exposure across the year, helps you stay on track, and frees up your mental energy for everything else - like exams, placements, or your next shift.

Also, you still use your annual allowances - and if you’ve got room left at the end of the tax year, you can always top up with a lump sum.

Investing is a long game

As a future doctor or dentist, you’re already thinking long-term - about your career, your patients, and your goals. Investing is no different. Markets will rise and fall, and that’s part of the journey. But by staying consistent and spreading your contributions, you give yourself a better shot at long-term growth.

Final thoughts

Pound cost averaging is about building a habit, not trying to time the market. Whether you’re saving for a home, retirement or just building wealth, small regular steps can lead to meaningful results.

So, while you’re meal prepping for the week or planning your next rotation, consider setting your finances to slow cook in the background. It’s one less thing to worry about, and your future self might thank you for it.

This blog is for information purposes only and does not constitute financial advice.