How to Grow $500 into $50,000


  • AA = Final amount
  • PP = Principal ($500)
  • rr = Annual rate of return (expressed as a decimal)
  • tt = Time (in years)

  • Divide both sides by 500: 100=(1.10)t100=(1.10)t
  • Take the natural logarithm: t≈48.3t≈48.3 years.

  • Initial investment: $500
  • Monthly contribution: $100
  • Time: 20 years
  • Rate: 10%


Practical Steps to Get Started

  1. Open a Brokerage or Retirement Account: Use low-fee platforms (like the ones mentioned here) to keep costs minimal.
  2. Invest in Low-Cost Index Funds: ETFs like VOO (S&P 500) or VTI (total stock market) offer diversified, steady growth.
  3. Automate Contributions: Set up monthly transfers to ensure consistency.
  4. Avoid Temptations: Never withdraw early—let the compounding snowball roll undisturbed.

The Bottom Line

Your $500 seed is waiting to grow. Plant it today.