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3 Ways To Grow $3,000 Into a $1 Million Nest Egg

Map out a plan to grow your money to the million-dollar mark.

By Sarah Sharkey

Edited by Chris Kissell

Updated Jan. 19, 2025

If you hope to become a millionaire, saving money is a good place to start. But the real magic happens when you start investing that cash with the goal of growing it over the long haul.

Those who have put their hard-earned dollars to work in the stock market historically have earned a long-term average of around 10%.

While there is no guarantee returns will be that generous in the future, there is a good chance that simply starting to invest with $3,000 — and investing more later on — will help you build your wealth and reach $1 million.

Here is how long it might take.

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1. Invest $250 a month for 38 years at a 10% return

If you are starting from scratch, investing $250 per month, or $3,000 per year, for 38 years with a 10% return will lead to a nest egg of $1.09 million.

The key to this outcome is time. With almost 40 years to grow, putting even a modest amount of funds to work every year can lead to amazing returns.

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2. Invest $500 a month for 31 years at a 10% return

Investors who dig a little deeper and invest $500 will see their nest egg swell to $1.09 million in just 31 years.

While it can be difficult to double the amount you invest, doing so can shave seven years off how long it takes to become a millionaire.

3. Invest $1,500 a month for 20 years at a 10% return

Savers who are really ambitious will find that investing $1,500 per month will get them to the $1.03 million mark after 20 years.

Remember, all of these scenarios assume a 10% return. It's possible the stock market could do a little worse — or a little better — over the periods we talk about in these examples.

How to scrape together $3,000 to invest each year

When it comes to building wealth, scraping together the funds to save each month is crucial. Of course, gathering that money can be challenging. But the good news is that it's possible for many to invest this amount each year.

Here are some strategies that can help you save enough money to invest $3,000 — or more — each year.

1. Track your spending

Start the process by tracking your spending. Many budgeting apps track and categorize your spending for you. Or, you can go old school and use a spreadsheet or even a piece of paper.

Regardless of the method, tracking spending helps you to see where your money is going. You might quickly spot an area or two where spending is higher than you'd like. Make the effort to slash spending there and earmark the savings for investments.

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Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.00% (as of 12/27/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

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2. Limit dining out

Although dining out can be a treat, this small luxury can damage your ability to save quickly. In fact, you might be surprised by how much your restaurant bills add up each month.

For example, if you spend $50 on lunch or dinner twice a week, that's $5,200 a year — more than enough to get you to the $3,000 you need to invest.

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4. Cut back on transportation costs

Transportation costs often add up to one of the biggest expenses in your budget. But most of us can get creative to cut back on these costs.

For example, you could opt to take public transportation or carpool instead of spending money on gas and parking fees.

5. Comb through your subscriptions

Many of us have more subscriptions than we really need.

Comb through your expenses and look for all your subscriptions. Try to whittle them down to the ones you actually use. This might save you hundreds of dollars per year.

6. Automate your investments

Saving and investing manually every month can feel like a chore. Instead of testing your willpower, automate your investments.

For example, you can automate things so money from your paycheck automatically goes into investments. This eliminates the temptation to spend the funds you planned to invest.

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This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 3.80% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. See full bonus and annual percentage yield (APY) terms at <a href="http://www.sofi.com/banking#1">sofi.com/banking#1</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Jan. 24, 2025. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.

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SoFi has no account fees⁵ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> or overdraft fees⁶ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.  The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY.  Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $3 million on deposits is available through a seamless network of participating banks.⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>. Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.

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8. Switch to a high-yield savings account

Switching to a high-yield savings account can be a game-changer. You will earn more on your savings by taking this simple step.

Throughout the year, the extra cushion you get from higher earnings can help you feel more comfortable about investing in the stock market.

9. Shop around for insurance

Insurance costs are an unavoidable part of life. If you are facing rising insurance bills, shop around for coverage.

Getting quotes from multiple insurance companies can help you find the most affordable option for your situation. Depending on your needs, you might save hundreds by switching up your insurance company.

10. Cut housing costs

Housing costs are often the single biggest line item in your budget. Cutting your housing costs can add to your bottom line.

Some ways to lower your costs include finding a roommate, downsizing your space, or renting out an extra room in your house.

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11. Get a side hustle

A side hustle can help you make extra money on the side so you can invest in your future. Building a side hustle takes hard work, but the financial rewards can transform your trajectory.

Some potential side hustles include walking dogs, starting a blog, and baby-sitting.

Bottom line

As you start investing, know that remaining consistent with your efforts can help you reach big goals. With enough time and diligence, you could see your funds grow to $1 million and beyond.

Although the journey will come with ups and downs, investing for the long-term can help you create a financially stable future.

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Author Details

Sarah Sharkey

Sarah Sharkey is a personal finance writer who enjoys diving into the details to help readers make more informed decisions. She covers mortgages, insurance, money management, travel, and more.