Jasmine Birtles
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How to Invest £50k and Get Paid Every Month
Ruby Layram
8th Apr 2025
So, you’ve got £50,000 sitting in your account and you want to do something smart with it. Not just stick it in a savings account earning a couple of quid a year. No- you want to invest it, and better yet, you want it to pay you every month. Sound good? Thought so.
Let’s talk about how to invest £50k in a way that gets your money working hard for you- and delivering that sweet monthly income.
First Things First: Know Your Goals
Before you dive into anything, take a moment to think about what you actually want from this investment. Are you after consistent monthly income? Do you need your capital to stay accessible? Or are you happy to lock it away for a while?
Your answers will help shape your investment strategy.
For example, if you want maximum monthly income and you’re happy with a bit of risk, dividend-paying stocks or buy-to-let might work. But if you’re looking for safety and simplicity, maybe fixed income products are more your speed.
1. Dividend-Paying Stocks
One of the most popular ways to generate monthly income is through dividend-paying shares. These are stocks that pay out a portion of their profits to shareholders, often quarterly or semi-annually. Some even pay monthly- great news for you if you want regular cash flow.
If you build a portfolio that includes companies with staggered dividend payout dates (some pay in January, others in February, and so on), you could receive income every single month. Think FTSE 100 stalwarts like Unilever, Legal & General, or even global companies like Johnson & Johnson and Procter & Gamble.
How to do it: Open a Stocks and Shares ISA or a general investment account. Use platforms like Hargreaves Lansdown, Freetrade, or InvestEngine to build your portfolio. Many also offer ready-made portfolios that focus on income.
Expected return: Around 3–5% annually, which could be about £1,500–£2,500 per year, or roughly £125–£200 per month.
Pros:
- Capital growth potential
- Tax-efficient if held in an ISA
- Flexibility to sell whenever you like
Cons:
- Dividends aren’t guaranteed
- Stock prices can fall
2. Bonds and Bond Funds
If you want less volatility and more predictability, bonds could be your friend.
Bonds are loans you give to governments or companies, and in return, they pay you interest. You can buy individual bonds or invest in bond funds that spread your money across loads of different issuers.
While UK government bonds (gilts) and high-grade corporate bonds won’t make you rich overnight, they’re generally seen as safer than shares. And the great thing is, many bonds pay interest monthly or quarterly.
How to do it: You can buy bonds directly or invest in bond ETFs (exchange-traded funds) through platforms like InvestEngine or Vanguard. Look out for income-focused bond funds with a history of monthly payouts.
Expected return: 2–4% annually. That’s £1,000–£2,000 a year or around £80–£160 per month.
Pros:
- More stable than stocks
- Regular, predictable income
Cons:
- Lower returns than equities
- Sensitive to interest rate changes
3. Real Estate Investment Trusts (REITs)
Want a slice of the property market without being a landlord?
REITs let you invest in commercial or residential property without the hassle of tenants, repairs, or estate agents. These trusts own property and pay out most of their profits as dividends- often monthly or quarterly.
Some popular UK REITs include Primary Health Properties, Tritax Big Box, and Supermarket Income REIT. And many of these provide steady, inflation-beating income.
How to do it: Buy REIT shares through your investment platform of choice. You can hold them in an ISA to avoid tax on dividends.
Expected return: 4–6% annually. That’s £2,000–£3,000 a year or around £165–£250 a month.
Pros:
- Hands-off property exposure
- Good income potential
- Easy to buy and sell
Cons:
- Property market risks
- Share prices can fluctuate
4. Peer-to-Peer Lending
If you’re willing to take on a bit more risk, peer-to-peer lending could be worth a look. You lend your money to individuals or businesses through online platforms, and in return, you get interest payments- often monthly.
Platforms like Kuflink, Loanpad or Assetz Capital make it easy to get started. You can usually choose your risk level too, from property-backed loans to unsecured consumer credit.
How to do it: Sign up on a reputable platform, choose your investment level and risk appetite, and let the interest roll in.
Expected return: 5–8% annually. That’s £2,500–£4,000 a year or about £210–£330 a month.
Pros:
- Higher income potential
- Monthly interest
- Diversified lending options
Cons:
- Capital at risk — defaults happen
- Not covered by FSCS
5. Buy-to-Let Property
Yes, we had to include it. Buy-to-let is the classic income generator in the UK — and for good reason. If done right, it can provide solid monthly returns and potential capital appreciation over time.
With £50k, you probably won’t buy a property outright, but you could use it as a deposit on a buy-to-let mortgage.
For example, a £50k deposit on a £200k flat in a city with strong rental demand could get you a monthly rental income after expenses.
How to do it: Speak to a mortgage broker about your options. Look into areas with high rental demand and affordable property prices (think parts of the Midlands, North West, or South Wales).
Expected return: After costs, you could net £300–£600 a month, depending on location and mortgage terms.
Pros:
- Tangible asset
- Monthly rental income
- Property usually appreciates over time
Cons:
- Time-consuming
- Property maintenance, tenants, voids
- Stamp duty and tax costs
What About Splitting the Pot?
One of the smartest ways to invest your £50k is to diversify. That just means spreading your money around so you’re not putting all your eggs in one basket. You could:
- Put £20k into dividend stocks
- £10k into a REIT
- £10k into a bond fund
- £10k into peer-to-peer lending
That way, you get a good mix of income sources, reduce your risk, and still give yourself the chance to grow your wealth. And importantly- that monthly income you’re after becomes more reliable because it’s coming from different streams.
Watch Out For Tax
If you’re generating monthly income, you might end up paying tax on it. But there are smart ways to keep the taxman at bay.
Use your tax-free ISA allowance (currently £20,000 per year). If you’re using a pension like a SIPP, you can invest up to your annual allowance with tax relief. Dividend income and savings interest have their own allowances too- just make sure you stay within the limits.
Final Thoughts: Make Your £50k Work Smarter
Investing £50,000 to get paid every month isn’t just possible- it’s a fantastic way to use your money wisely.
Whether you’re topping up your salary, boosting your pension, or funding some well-earned freedom, the key is to choose the right mix of investments that suit your lifestyle and risk tolerance.
The best part? You’re not just sitting on a lump of cash- you’re building something that pays you. Month in, month out.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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