We all want to make a million pounds. There are a few different ways to turn £5 into a million pounds.
You could buy some Scratch cards or try to win who wants to be a millionaire, but these don’t have great odds.
You could start saving. If you manage to save £5 a day you would have £1825 by the end of the year. However, to get to a million you would have to save for 548 years.
Given only Yoda has lived that long and our life expectancy is 81 years you need a better alternative.
Start investing in the stock market.
If you invest £5 a day and it grows at an average of 10% per annum how long will it take you to become a millionaire? 43 years.
You will have invested only £78,475 to make over £1 million thanks to the power of compound interest.
43 years may seem like a long time but if you are in your mid 20s that is a million for retirement for the price of a pint a day. If you are in your mid 40s it will make for a hell of 90th birthday party.
How to make a million pounds by investing just £5 milestones
Imagine if you saved for 100 years. You could provide for future generations with over £250 Million. These figures where calculated using our investment calculator.
If Yoda had put away £5 a day and grown it at 10% over 548 years how much do you think he would have? £879,942,583,324,365,657,414,303,744 – a number too big to fathom.
You may have heard an apple a day keeps the doctor away but what they should have told you is a fiver a day keeps poverty at bay.
Warning: This is for article informational and inspirational purposes. Investments returns go both up and down and can differ significantly from the 10% quoted here. The above calculation does not include the impact of taxes, trading costs or inflation.