Millions of football fans are looking forward to the big game this Sunday. Most will have to enjoy it from the comfort of their couch. Tickets to the game cost, on average, $3,000 to $6,000 each, and most people can't afford to spend that kind of money.
Even if you do have $6,000 to spend, there's a better thing to do than use it on a four-hour event. Investing it right now could potentially turn that into a whopping $100,000 over time with next to no effort.
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Scoring big without breaking the bank
The stock market is a smart way to generate wealth, and you don't need to invest much to see significant returns.
Say you invested $6,000 and left it alone without any additional contributions. You'd have around $105,000 after 30 years, assuming you're earning a 10% annual rate of return.
If you were to invest a little bit each month in addition to your initial $6,000 investment, you could earn even more. For example, say you invest $6,000 right now and then add another $100 per month for the next 30 years. If you're still earning a 10% annual return, you'd have more than $300,000 in savings.
Investing for the long term is key, because the longer you let your money grow, the more you stand to earn.
Where to invest to get the most bang for your buck
If you choose to invest in the stock market, it's crucial to make sure you're investing in the right places. Investing all your money into a single stock can be a recipe for disaster, so it's best to diversify your investments.
If you're investing in individual stocks, aim to invest in at least 10 to 15 different stocks across multiple industries to diversify your portfolio. Or you may opt to invest in mutual funds or ETFs, which are large groups of stocks, bonds, and other securities bundled together into a single investment.
Exactly where you invest your money will depend largely on your risk tolerance and investing style. If you're eager to research different stocks and are willing to take on more risk, investing in individual stocks may be a good fit. Or if you're more risk-averse and prefer a hands-off approach to investing, mutual funds or ETFs may be better options.
Regardless of where you choose to invest, make sure you're taking a long-term approach. Focus on strong companies and funds that are likely to thrive over the long run, and you'll be setting your investments up for success.
