You may think that trying to grow your portfolio to $1 million or more is impractical and that it’s too difficult to do. But if you’re aiming for small gains and savings, this becomes a much more plausible scenario to consider. Eating out less, switching utility or cell phone providers, or buying private label products instead of big brands are some ways to regularly save extra money.

Simply save and invest $10 a day to eventually end up with a portfolio that can grow to at least $1 million. Here’s how it can work.

Saving $10 a day equals putting aside $3,650 a year

If you’re considering having to save and invest $3,650 per year, this amount may seem difficult, especially in a context of inflation. But if you break it down into smaller chunks and aim to save $300 per month or $10 per day, it can be much more achievable. And it also puts into perspective how costly these seemingly innocent and small everyday expenses can be. Depending on how much you spend each day on coffee or eating out, avoiding some of these costs or opting for cheaper options could be enough to help you save just as much.

And if you can save $3,650 a year and do it over the long term, then you’re well on your way to building a solid retirement fund. After 20 years of saving, you will have saved $73,000. And after 30 years, the total would be almost $110,000. That’s nowhere near a million dollars, but that’s where investing those savings can make a huge difference.

A Top Vanguard Fund Can Help You Achieve Market-Beating Returns

If you can save $10 a day or around $300 a month, you better put that money to use right away. This means putting it in an exchange-traded fund (ETF) that can help you grow your savings without putting it at a lot of risk. ETFs offer good diversification and can help you earn excellent long-term returns.

A popular ETF with growth investors is the Vanguard ETF Growth Index Fund (NYSEMKT:VUG). As the name suggests, it focuses on growth stocks. The fund has 183 stocks, with the bulk of its allocation to technology stocks making up nearly 58% of the fund’s portfolio. Consumer discretionary stocks are the second largest sector, accounting for more than 18% of the Vanguard fund’s holdings. Providing you with a diverse mix of the world’s leading growth stocks, including Nvidia And Amazonthe fund can be a great place to invest money each month, especially given its razor-thin nature spending rate by only 0.04%.

Over the past 20 years, the fund has generated total returns (which includes dividend payments) of over 900% and has significantly outperformed the S&P500.

VUG Total Yield Level data by Y Charts

Investing in the Vanguard fund for 30 years can result in a portfolio worth over $1 million

The Vanguard ETF’s return of approximately 920% over the past two decades averages out to a compound annual growth rate (CAGR) of approximately 12.3%. The S&P 500, in comparison, has achieved an average CAGR of around 10.7%.

Assuming these rates hold up over the long term, here’s how a $10/day or $300/month investment in the Vanguard fund would grow over the years, and how that would compare to a simple reflection of the S&P 500.

Calculations by author.

Although the difference in growth rates may seem modest, the difference in balances can be substantial over a very long period of time. This is why investing in the Vanguard growth-oriented fund can be particularly effective. The possibility that it will continue to outperform the S&P 500 may make it a great place to regularly allocate your savings.

However, it is important to remember that future returns are never a guarantee and that they are likely to be different from the above estimates. But by investing in growth stocks, you can give yourself a great chance of successfully outperforming the market over the long term.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Nvidia, and Vanguard Index Funds-Vanguard Growth ETFs. The Motley Fool has a disclosure policy.