Here’s How Saving $10 per Day for 30 Years Can Create a $1 Million Portfolio

You might think trying to grow your portfolio to $1 million or more is unattainable, and that it’s too difficult to do so. But if you aim for small wins and savings, it becomes a much more plausible scenario to envision. Eating out less, switching utility or cellphone providers, or buying private label products rather than the big brands are some ways you can achieve incremental savings on a regular basis.

Just saving and investing $10 per day can be enough to eventually lead to a portfolio that grows to at least $1 million in size. Here’s how that can work.

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If you were to think about having to save and invest $3,650 per year, that amount may seem difficult, especially amid inflation. But if you break it down into smaller chunks and aim to save $300 per month or $10 per day, it can be far more achievable. And it also puts into perspective just how costly those seemingly innocent and modest daily expenses can be. Depending on how much you spend on coffee or eating out each day, avoiding some of those costs or trading down to cheaper options could be enough to help you achieve that much in savings.

And if you’re able to save $3,650 per year and do that over the long term, then you can be well on your way to setting up a strong retirement fund. After 20 years of saving that much, you will have put aside $73,000. And after 30 years, the total would be nearly $110,000. That’s nowhere near $1 million, but this is where investing that savings can make an enormous difference.

If you can save $10 per day or approximately $300 per month, you’ll be better off putting that money to work right away. That means putting it into an exchange-traded fund (ETF) that can help grow your savings without putting it at much risk. ETFs offer good diversification and can enable you to earn great long-run returns.

One ETF that is popular with growth investors is the Vanguard Growth Index Fund ETF (NYSEMKT: VUG). As the name suggests, it focuses on growth stocks. There are 183 stocks in the fund, with the bulk of its allocation in tech stocks representing nearly 58% of the fund’s portfolio. Consumer discretionary stocks make up the next-biggest sector, accounting for more than 18% of the Vanguard fund’s holdings. By giving you a diverse mix of the top growth stocks in the world, including Nvidia and Amazon, the fund can be a great place to invest money every month, especially given its razor-thin expense ratio of just 0.04%.


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