Got $50 Per Week? How the Stock Market Could Turn It Into $395,000

Investing in the stock market can be intimidating, but it's also one of the easiest and most effective ways to build wealth over time.

You don't need to invest thousands of dollars per month or be a stock market expert to make a lot of money, either. With one investment that requires little effort on your part, it's possible to transform $50 per week into roughly $395,000 or more. Here's how.

Keeping your money safer

Whether you're new to the stock market or are simply looking for a low-maintenance, low-risk investment, you can't go wrong with an S&P 500 ETF.

An S&P 500 ETF -- such as the Vanguard S&P 500 ETF (VOO 1.00%), for instance -- tracks the S&P 500 index itself. It contains the same stocks as the index, or around 500 stocks from the largest and strongest companies in the U.S.

Historically, it's actually been more difficult to lose money with this investment than it is to make money. Analysts from Crestmont Research analyzed the S&P 500's rolling 20-year total returns over the past century and found that in every period examined, the index earned positive returns.

In other words, if you had invested in an S&P 500-tracking fund at any point and held it for 20 years, you'd have made money -- regardless of how volatile the market was during that time.

A few other advantages of investing in an S&P 500 ETF include:

• Instant diversification: By investing in just one ETF, you'll instantly own a stake in 500 companies across a wide variety of industries. This level of diversification can substantially lower your risk. Even if a few stocks in the fund don't perform well, it won't sink your entire portfolio.
• Requires next to no effort: The S&P 500 ETF makes a fantastic "set it and forget it" type of investment. You never need to worry about choosing stocks or deciding when to buy or sell. Simply invest a little each week or month, then sit back and wait for your money to grow.
• More likely to recover from downturns: The S&P 500 itself has a long history of recovering from even the worst crashes, bear markets, and recessions. While past performance isn't indicative of future returns, it's extremely likely this investment will survive whatever volatility may be in store.

Not only is the S&P 500 ETF far safer than many other investments, but it can also help you earn hundreds of thousands of dollars or more over time.

A wealth-building powerhouse

Throughout its history, the S&P 500 itself has earned an average rate of return of around 10% per year. While that doesn't mean you'll earn 10% returns each and every year, all of the annual ups and downs should average out to roughly 10% per year over decades.

If you were to invest $50 per week in an S&P 500 ETF while earning a 10% average annual return, here's approximately how much it would add up to over time:

Data source: Author's calculations via Investor.gov

At this rate, it would take roughly 30 years of consistent investing to reach $395,000 in total savings. But if you have even a few more years to invest, it could boost your savings exponentially.

The key to earning as much as possible in the stock market is to start investing as soon as you can. Even if the market is volatile or you can't afford to invest much, time is your most valuable resource. The more time you have to save, the more you can potentially earn.