Most people spend $100 per month (or more) for cable TV or streaming services, their cellphone service, gas, coffee to go, or any number of things without thinking about it. Some people even spend money on subscriptions they’ve forgotten they had. I recently realized I was paying way too much for an audiobook service that I hadnʻt used for a year!
While many of these expenses bring great joy to your life, there are some you could certainly cut out. What if, for example, you saved that $5 per day on coffee and a bagel and invested it in something that will likely grow your money, like the stock market?
Letʻs take a look at how you could turn $100 per month into $100,000.
Where should you put your $100?
So your plan is to take that $100 per month you spent on breakfast to go, or from the monthly stimulus payment you may be getting from the federal government, and invest it. If youʻre somewhat new to investing or don’t have a lot of time to spend researching stocks, a good option is an exchange-traded fund, or ETF.
ETFs trade like stocks with their own tickers, but they act like index mutual funds as they track a particular index or benchmark. There are some actively-managed ETFs, too, but the vast majority are passively managed. You could invest in any segment through an ETF, including large-cap stocks, small-cap stocks, a particular sector, or the broad market. Overall, there are more than 7,000 different ETFs worldwide.
Read More: What would happen if you invested $100 a month in the stock market? |