What would happen if you invested $ 100 per month in the stock market? | Smart change: personal finance


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Dave Kovaleski, The Motley Fool,

Most people spend $ 100 a month (or more) on cable TV or streaming services, their cell phone service, gasoline, coffee to go, or a few things without thinking about it. Some people even spend money on subscriptions they forgot they have. I recently realized that I was paying way too much for an audiobook service that I hadn’t used in a year!

While many of these expenses bring great joy to your life, there are some that you could definitely avoid. What if, for example, you save $ 5 a day on coffee and a bagel and invest it in something that will likely make your money grow, like the stock market?

Let’s see how you could turn $ 100 a month into $ 100,000.

Where should you put your $ 100?

So your plan is to take that $ 100 per month that you spent on takeout breakfast, or the monthly stimulus payment you might receive from the federal government, and invest it. If you are new to investing or don’t have a lot of time to spend researching stocks, a good option is a exchange traded fund, or ETF.

ETFs trade like stocks with their own tickers, but they act like index mutual funds because they track a particular index or benchmark. There are also actively managed ETFs, but the vast majority are passively managed. You can invest in any segment through an ETF, including large cap stocks, small cap stocks, a particular industry, or the broad market. Overall, there are over 7,000 different ETFs around the world.

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