August turned out to be a much better month for my investments and overall net worth.
After a volatile few months, my net worth increased by £22,500, bringing my total net worth to £584,401.
That represents a 4% gain in just one month.
The markets have bounced back, with the S&P 500 recovering after recent volatility. However, it certainly hasn’t been a smooth ride. AI stocks in particular have been extremely volatile, with some companies experiencing big swings in both directions.
The excitement around artificial intelligence is still huge, but there is also a lot of uncertainty about which companies will ultimately benefit the most. At the moment, investors seem to be moving in and out of AI stocks very quickly, creating some big daily price movements.
Personally, I am trying not to get too caught up in the day-to-day noise. I have a long-term investment plan, and although retirement is now getting closer, I still believe in keeping a significant portion of my money invested for the future.
Of course, the wider world is also adding to the uncertainty. The war involving Iran is still ongoing, and geopolitical events can quickly affect markets, oil prices and investor confidence.
It is another reminder that there is always something happening in the world that can cause investors to worry.
Yet despite all the uncertainty, the markets have once again shown how quickly they can recover.
How do I afford to save £2500 and you can also
One of the questions I often get asked is:
“How can you afford to invest £2,500 a month?”
The honest answer is that my situation is quite specific because I am now in the final year before retirement.
This is not something I would necessarily have been able to do earlier in my life, and I certainly don’t want people to think that everyone can simply find £2,500 sitting around every month.
However, I wanted to explain how I am doing it because there may be some ideas that others can adapt to their own situation.
My wife has a relatively small pension of around £14,000.
I am currently drawing down approximately £1,200 per month from that pension and using it to support our household income by paying it into our joint account.
This helps replace income that we would otherwise need to take from somewhere else.
At the same time, because I am still working and in my final year before retirement, I am putting an additional £1,200 per month into my AVC through work.
This is where the pension system can really make a difference.
Money paid into my AVC benefits from Income Tax and National Insurance savings. Every month, £1,201 goes into my AVC, but it only reduces my take-home pay by around £872. That means I get an immediate boost of approximately £329 every month through tax and National Insurance savings. That means getting approximately a 27.4% immediate uplift
Depending on your tax rate and pension arrangement, your contributions can receive a significant uplift through tax relief.
So, by carefully managing our household income and making the most of the pension contributions available to me in my final year of work, I am able to put around £2,500 a month into investments and pensions.
The important point is that I am not magically finding an extra £2,500 every month.
I am moving money around in the most tax-efficient way I can while taking advantage of the opportunities available to me before I retire.
Could You Do Something Similar?
Everyone’s circumstances are different, but it is worth looking at where your money is going.
For example:
- Are you making the most of your employer pension?
- Do you receive employer contributions that you could increase?
- Are you paying more tax than necessary?
- Do you have existing pensions that could support your current financial plans?
- Could salary sacrifice or AVC contributions help you save more efficiently?
- Are there any regular expenses that could be redirected towards your future?
You might not be able to invest £2,500 a month, but perhaps you could invest an extra £100, £250 or £500.
The amount is less important than getting into the habit of consistently putting money aside for your future.
August’s Net Worth
| Date | Total Net Worth | £ Gain this month | % Gain this month |
| 16/09/2025 | £510,518 | £20,112 | 4.10% |
| 16/10/2025 | £533,165 | £22,647 | 4.44% |
| 16/11/2025 | £535,587 | £5,591 | 1.05% |
| 12/12/2025 | £539,739 | £4,152 | 1.40% |
| 12/01/2026 | £550,380 | £10,641 | 1.97% |
| 12/02/2026 | £556,319 | £5,939 | 1.08% |
| 21/03/2026 | £549,551 | -£10,130 | -1.81% |
| 16/04/2026 | £547,917 | -£1,634 | -0.30% |
| 11/05/2026 | £562,081 | £15,241 | 2.79% |
| 11/06/2026 | £577,240 | £15,159 | 2.70% |
| 11/07/2026 | £561,815 | -£15,425 | -2.67% |
| 11/08/2026 | £584,401 | £22,500 | 4.00% |
| Yearly | £94,793 | 18.75% |
Wedding abroad
August wasn’t all about investments and money, the highlight of the month was travelling to Spain for my daughter’s wedding.
The wedding was held at a beautiful villa, and we were lucky enough to have our accommodation included. We just had to pay for the flights, which made the trip much more affordable.
It was a fantastic holiday and, most importantly, a chance to spend time with family.
There was plenty of relaxing by the pool, trips into the local town and, of course, a visit to PortAventura for the rides and shows.
After the wedding celebrations and a week of relaxing, I came back feeling completely refreshed.
Sometimes it is easy when you are focused on building wealth and investing for retirement to forget why you are doing it in the first place.
For me, financial independence isn’t just about watching a net worth number increase, it is about having the freedom to enjoy moments like this.
Being able to spend time with family.
Travelling.
Relaxing.
And hopefully, when retirement finally arrives, having the financial security to enjoy more of these experiences.
Looking Ahead
At the moment, my net worth stands at £584K
I am now getting very close to retirement, so the next year will be particularly important.
Markets remain unpredictable, AI stocks remain volatile, there is still geopolitical uncertainty around the world.
And nobody knows exactly what the markets will do next month.
But for now, my plan remains the same:
Keep investing.
Make the most of my final year of pension contributions.
Avoid panicking during market volatility.
And most importantly, remember to enjoy life along the way.
Because there is no point in building wealth for the future if you forget to enjoy the present.