£100 a month to invest? I like the stock market for wealth generation

first_img Image source: Getty Images. £100 a month to invest may not seem like a huge sum, but it’s a great starting point. If you can afford to put £100 a month away regularly, I say go for it.Start investing when you’re young and the greater chance you have of serious wealth generation as even a small (but regular) investment can work wonders when it comes to accumulating a future nest egg.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Economic senseThe stock market has a long track record of making people rich. It’s also at the heart of our economy with pension funds, investment portfolios and insurance companies investing large pools of wealth in the financial markets to beat inflation and safeguard future returns.Nowadays, online brokers like Hargreaves Lansdown and Interactive Investor make it simple for ordinary investors like you and I to invest our hard-earned cash in shares.I think a Stocks and Shares ISA is the easiest starting point, but if you’re feeling confident, then a Self-Invested Personal Pension (SIPP) is also straightforward.Accumulating wealthIf you were to invest £100 a month in stocks with an average annual return of 7%, then within 20 years you could accumulate over £52k.The FTSE 100 index has averaged 7% over the past decade, so even investing in a simple tracker fund could help you realise that goal.By investing in FTSE 350 companies with decent dividend yields, and reinvesting your gains, along with your monthly contributions, this goal could easily be exceeded.A monthly £100 contribution, topped up by annual dividends would enjoy a compounding effect, gaining interest on your interest. This means at an average annual return of 10%, you could achieve over £75.5k in the same time frame.Increase this to a 40-year period and at an 11% return, you could attain more than £867k from your £100 a month.So as you can see, big wealth generation isn’t just achievable but doesn’t even require huge lump sums.The Warren Buffett wayBillionaire investor Warren Buffett has been advocating the merits of the stock market for decades now. His personal style is value investing, first introduced to him by Benjamin Graham. The principle of value investing is to buy shares in companies that are trading at a discount to their intrinsic value. That means buying shares in a company that may be currently out of favour, but has enough good things going for it that it’s likely to bounce back and recover.This may sound simple, but it’s easier said than done and it’s vitally important that research is carried out into a company before you commit to buying shares in it. Studying the company’s annual report and trading updates is a great place to begin, as you can learn a lot from these documents and get a clearer picture of where the business is at.If you can afford to start investing, then what’s stopping you? The longer you can put your money to work, the more likely you’ll be to achieve future wealth generation or even millionaire status. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Kirsteen Mackay | Wednesday, 5th February, 2020 I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Kirsteen Mackay “This Stock Could Be Like Buying Amazon in 1997”center_img Our 6 ‘Best Buys Now’ Shares £100 a month to invest? I like the stock market for wealth generation Simply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown. 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