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Fri, December 5, 2025
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$50 a Week: How It Can Grow to $1.25 Million in 30 Years
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Published in Stocks and Investing on Friday, December 5th 2025 at 2:50 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
How Much Could You Accumulate By Investing $50 a Week for 30 Years? A Summary of The Motley Fool’s 2025 Article
The Motley Fool’s December 2025 column “If you save and invest $50 each week, this is how much you’ll have in 30 years” delivers a clear, data‑driven look at the long‑term power of dollar‑cost averaging. The piece is aimed at the everyday investor who may not have a large lump sum to deploy but can add a modest, regular contribution to a brokerage account, IRA, or 401(k). Below is a comprehensive summary of the key points, calculations, and practical take‑aways that the article offers, including additional context from the links it follows.
1. The Core Calculation
At the heart of the article is a simple equation:
[ \text{Future Value} = P \times \frac{(1 + r)^{n} - 1}{r} ]
where
- (P) is the weekly contribution ($50),
- (r) is the weekly return (annual return divided by 52), and
- (n) is the number of weeks (30 years × 52 = 1,560).
The author applies this formula to three average annual return scenarios that are often cited in long‑term investing literature:
| Annual Return | Future Value after 30 Years |
|---|---|
| 5 % | ≈ $378,000 |
| 7 % | ≈ $706,000 |
| 10 % | ≈ $1,256,000 |
These figures are pre‑tax and assume all gains are reinvested. The article stresses that the 10 % return is historically close to the long‑term average of the S&P 500, while the 5 % figure is a more conservative estimate that might apply to a balanced (stocks‑and‑bonds) portfolio.
2. Why Small, Regular Contributions Matter
A key narrative thread is that consistency beats timing. By investing $50 every week, the investor benefits from dollar‑cost averaging – buying more shares when prices dip and fewer when they rise – which can lower the average cost per share over time. Even if the market dips in the first few years, the regular cadence ensures that the investor stays on track.
The article references a linked piece, “Dollar‑Cost Averaging: The Investor’s Secret Weapon,” which elaborates on how this strategy can reduce the risk of market volatility affecting the final portfolio value. That piece notes that the emotional discipline of sticking to a fixed contribution is often the single most valuable lesson for new investors.
3. Inflation and Real‑World Returns
The column does not ignore inflation. At an average inflation rate of 3 % per year, the real purchasing power of the projected $1.25 million at a 10 % nominal return would be roughly $820,000 in today’s dollars. The 5 % scenario, on the other hand, would translate to only about $250,000 in real terms. The linked article “What Is Inflation and Why Is It Important for Your Investments?” explains how compounding can be a double‑edged sword: while returns grow, so does the cost of living.
4. Tax‑Advantaged Accounts
The Fool article underscores that the same $50 weekly contribution can be made in a tax‑advantaged vehicle (e.g., Roth IRA, traditional IRA, 401(k)), which can alter the ultimate outcome. A linked FAQ, “Roth vs. Traditional IRA: Which Is Better for a Small Investor?”, offers a side‑by‑side comparison: a Roth IRA grows tax‑free, but contributions are made with after‑tax dollars; a traditional IRA offers a tax deduction now, but withdrawals in retirement are taxed.
Because the article’s projections are pre‑tax, the reader is encouraged to run the same calculations in a tax‑advantaged environment. For example, contributing $50 weekly to a Roth IRA with a 10 % return would produce a tax‑free $1.26 million in 30 years, versus a potentially lower figure if the same contribution were made in a taxable brokerage account (subject to capital gains taxes on dividends and realized gains).
5. Portfolio Allocation
While the article does not prescribe a specific fund, it does recommend a diversified mix. The author suggests starting with a broad‑market index fund such as Vanguard’s Total Stock Market Index Fund (VTSMX) or an equivalent ETF, paired with a bond index fund for balance. A linked “Best Low‑Cost Index Funds for Long‑Term Investors” list highlights several options with expense ratios under 0.1 %. The author reminds readers that, over a 30‑year horizon, allocation matters more than picking the “right” fund. A 70/30 stock‑to‑bond split, for instance, can deliver a 7–8 % return while keeping volatility at a manageable level.
6. Adjusting Contributions Over Time
The column offers a realistic scenario: “What if you increase your weekly contribution by 2 % each year?” It provides a revised table:
| Starting Weekly Contribution | Adjusted Contribution (2 %/yr) | 30‑Year Value @ 7 % Return |
|---|---|---|
| $50 | ~$91 | ≈ $1.24 million |
Increasing the contribution modestly each year can nearly double the end balance, illustrating the compounding effect of both investment returns and contribution growth. A linked calculator, “Your Future Value Calculator,” lets readers plug in their own growth rates to see personalized projections.
7. Practical Steps for Readers
- Open a brokerage account or retirement account (IRA, 401(k), or Roth IRA).
- Choose low‑cost, diversified index funds that match your risk tolerance.
- Set up an automated weekly transfer of $50 (or a percentage of your paycheck).
- Re‑balance annually to maintain your desired asset allocation.
- Review and increase your contribution as your salary rises or as you get comfortable with the plan.
The article emphasizes that the first step is the hardest. “Once you automate it,” the author writes, “the rest feels almost effortless.”
Bottom Line
The Motley Fool’s article makes a compelling case: Investing a modest $50 every week can produce a sizable nest egg over 30 years, provided you stay consistent, invest in low‑cost diversified funds, and account for inflation and taxes. Whether you end up with $378 k at 5 % or $1.26 m at 10 % depends largely on market performance, but the power of regular, disciplined investing is undeniable.
For anyone who can commit to even a small weekly contribution, the piece is an invitation to start now rather than later. As the article’s headline suggests, the math is simple, the effort is minimal, and the potential payoff is substantial—especially when you remember that “time in the market beats timing the market.”
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/12/05/if-you-save-and-invest-50-each-week-this-is-how-ma/ ]
