Here’s How Much You Could Make If You Invested $5 a Day

Investing is the best way to grow your wealth over the long term, but misconceptions keep a lot of people from giving it a shot. For example, some might worry they could lose their life’s savings while investing. But if you diversify your portfolio and invest for the long term, major, lasting losses like this aren’t likely.

Another common misconception is that you need a lot of money to make investing worthwhile. More cash certainly helps, but it’s never been easier to start investing with small sums. Here’s a look at how much you could make investing just $5 a day.

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How to grow $5 a day into six figures

Five dollars a day amounts to about $150 per month or $1,825 per year. You might earn a small amount of interest on your funds if you kept them in a savings account, but your final balance isn’t going to be that much different than your total contributions. If you really want to grow your savings, you need to invest them.

Your investment return depends on several factors, including:

  • How much you invest
  • The investments’ rate of return
  • How long you hold the investments

Because there are several things at play here, it’s not possible to predict exactly how much you’ll earn over time. But the following table can give you an idea. It shows how much you’d end up with over different time periods with different average annual rates of return while investing $5 a day.

Time Frame

6% Average Annual Rate of Return

8% Average Annual Rate of Return

10% Average Annual Rate of Return

1 year

$1,875

$1,893

$1,911

5 years

$10,570

$11,107

$11,669

10 years

$24,716

$27,427

$30,461

20 years

$68,977

$86,640

$109,470

30 years

$148,244

$214,475

$314,398

Source: Calculations by author.

As you can see, there are a lot of possible outcomes. But the table illustrates two key points: The longer you leave your money invested and the better your investments do, the more you end up with in the end.

But only one of those factors is…

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