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.

Calculation showing how to make a million by investing £5 a day

You will have invested only £78,475 to make over £1 million thanks to the power of compound interest.

Chart showing how to make a million by investing £5 a day

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

Calculation showing how to make 100,000 pounds after 20 years
Calculation showing how to make a million pounds after 43 years
Calculation showing how to make 5 million pounds  after 60 years
Calculation showing how to make 250 million pounds after 100 years

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.

“The effects of compounding even moderate returns over many years are compelling, if not downright mind boggling.” – Seth Klarman

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.