6 Ways to Grow $7,500 Into a $1 Million Nest Egg

You can build an impressive nest egg starting with $7,500.

businessman checking stock market
Updated June 12, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

If you want to build wealth and grow a $1 million investment portfolio, the right plan can make all the difference. With some planning, consistently investing can push your funds past the $1 million mark.

Here are a few ways to grow your seed money from $7,500 to over $1 million, starting with two ways that won’t get you there.

Featured partner offer

4.2

Robinhood Benefits

  • Buy and sell stocks 24 hours a day, 5 days a week with Robinhood's "24 Hour Market"
  • Commission-free trading (other fees may apply)
  • No account minimum
  • Trade stocks, options, ETFs, and more
  • Earn 5.00% APY1 on your uninvested cash with Robinhood Gold, subscription fee applies
Join Robinhood here

Investing $7,500 but nothing else at 10% for 25 years

I Believe I Can Fly/Adobe businesswomen analyzing investment charts

While you could choose to stop investing with just your $7,500 initial investment, it would be tough to reach $100,000 within 25 years, let alone $1 million. If your investment provided 10% annual returns for 25 years, you’ll have a portfolio worth only $81,260.

Of course, having over $80,000 on hand is impressive. But it’s not even close to the seven-figure mark.

Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.

Investing $7,500 but nothing else at 20% for 25 years

Pormezz/Adobe person calculate monthly expense

If you invest $7,500 into an asset that provides 20% annual returns for the next 25 years, you would end up with $715,472.

That’s still short of your $1 million goal. Not to mention that you’d need to be the next Warren Buffett to consistently earn 20% returns on your investments year after year. Since the average investor rarely achieves 20% returns, this path isn’t very likely.

The good news is that you can pursue more practical ways of reaching $1 million. Let’s explore a few of those options next.

Investing $7,500 plus $800 monthly at 10% for 25 years

agenturfotografin/Adobe senior woman checking her investment

If you start with $7,500 and commit to investing $800 monthly for the next 25 years, 10% returns would lead to a portfolio worth $1,025,392.

Interestingly, 10% annual returns are similar to what the S&P 500 returns over several decades. So, if you invest in a low-cost index fund, these returns could be within your grasp (although past returns don’t guarantee future results).

Get a personalized financial plan to reach your goals faster

73% of Americans rank finances as their chief stress in life, according to a recent study.2 If you’re part of that 73%, J.P. Morgan Personal Advisors could help ease that stress.

Schedule your free one-on-one financial planning session with J.P. Morgan Personal Advisors,3 and you’ll get access to a team of fiduciary advisors who will create a personalized financial plan catered to your lifestyle and financial goals.

Working with an advisor may sound scary, but J.P. Morgan’s advisors are fiduciaries, so you can be confident that any advisor you work with has your best interest at heart.

Book your free financial planning session here

Investing $7,500 plus $1,400 monthly at 10% for 20 years

PaeGAG/Adobe successful accountant working

To accelerate the timeline, you’ll need to kick in more to your investment portfolio each month. Increasing your monthly investment to $1,400 to a portfolio earning 10% yearly will allow you to hit seven figures within 20 years.

At the end of 20 years, your portfolio will be worth $1,012,676.

Investing $7,500 plus $2,550 monthly at 10% for 15 years

dusanpetkovic1/Adobe woman designer putting a letter

For aggressive savers who want to reach $1 million within 15 years, investing $2,550 monthly into an asset with 10% annual returns will do the trick. At the end of 15 years, you’ll have a portfolio worth $1,003,567.

If you have the space in your budget to set aside thousands of dollars each month, it can propel you to your financial goals faster.

Investing $7,500 plus $1,100 monthly at 8% for 25 years

Planum/Adobe man handling finances

While 10% annual returns are achievable, not every investor will capture such high returns. The stock market is inherently volatile. You shouldn’t expect to earn 10% every year. For investors who want to err on the side of caution, expecting an 8% return might be more realistic.

If your investments return 8% each year, you’ll need to contribute more funds each month to make up the difference on your trek to $1 million.

For savers who add $1,100 to their portfolio each month for 25 years, 8% annual returns will propel them to $1,016,362.

Investing $7,500 plus $1,800 monthly at 8% for 20 years

Nina/peopleimages.com/Adobe writing documents for budget

If you’re a saver who wants to stay conservative and achieve your goal within 20 years, you’ll need to increase your monthly contributions to $1,800.

After investing $1,800 monthly with 8% annual returns for 20 years, your portfolio will reach $1,023,416.

Investing $7,500 plus $3,000 monthly at 8% for 15 years

TeTe Song/Adobe businessman checking a typed report

For savers with a compressed timeline and a conservative outlook, you’ll need to invest even more each month. If you invest $3,000 monthly with 8% annual returns for the next 15 years, your portfolio will reach $1,001,267.

Of course, investing thousands of dollars each month isn’t easy to do. But if you can hit this ambitious goal, you will see the fruits of your labor sooner rather than later. If this level of investing is a serious goal for you, consider picking up a side hustle and slashing your housing and transportation costs.

Bottom line

RichWolf/Adobe holding a crisp green banknote

When it comes to building a million-dollar portfolio, planning ahead is helpful. The sooner you start investing, the longer your funds have to grow.

If possible, consider setting up an automated investment solution to help you stick with the plan. Once you set it up, you can largely forget about the mechanics of investing and focus on living your life with the rest of your income.

4.2

Robinhood Benefits

  • Buy and sell stocks 24 hours a day, 5 days a week with Robinhood's "24 Hour Market"
  • Commission-free trading (other fees may apply)
  • No account minimum
  • Trade stocks, options, ETFs, and more
  • Earn 5.00% APY1 on your uninvested cash with Robinhood Gold, subscription fee applies
Join Robinhood here

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.