Use an S&P index fund for a savings account for money you don’t need

Kinda like a long term piggy bank for cash you won’t miss. Why do I say this?

Of course, past performance does not indicate what future performance is but here are the returns if you started off with a lump sum of $10,000 in 2010 until now, and did monthly additions of:

1. $500 – cost $82,000, MV $232,455

2. $1,000 – cost $154,000, MV $415,227

3. $2,000 – cost $298,000, MV $780,771

(Source: https://dqydj.com/sp-500-periodic-reinvestment-calculator-dividends/)

Obviously, most people know to do this for retirement but I made this post for non-serious or young investors. Even if you do few hundred a month, and you’ll no doubt make nice returns over the long term.