Getting passive income from ISA shares and support enrich our pension, sounds like a good idea. But do we not need piles of cash to even start on the stock exchange?

No, really not. So go with me when I determine what we can hope to achieve in just 10 pounds a day.

This is one thing in which we must be straightforward – it will take some time. But it may be surprising how nicely complicated they can accumulate over the years.

I would probably save my daily Tenner and send over a month to my ISA. I choose about 1000 GBP for each investment to reduce trade costs. I would expect you to buy some shares every three months.

What to buy?

Beginners often start with tracking the index, such as Ishares Core FTSE 100 UCITS ETF (LSE: ISF), which provides the necessary diversification. I am also a fool of such things City of London Investment Trust – applies to a smaller group of wrestling and raises dividend for 58 years in a row.

Such investments can keep nice when we develop a strategy for individual stocks.

FTSE 100 has brought an average annual return of 6.9% over the past 20 years. I would expect Ishares Core FTSE 100 to approach future FTSE 100 phrases, reduced by a compact annual management fee below 0.1%. Let’s say 6.8% – not anticipating, just an example for work.

What is it worth?

The above chart shows that we must expect variability, especially in a low period. I wonder how many investors panicked with Trump’s tariff dip in July?

Look further and tracking the index suffered exactly like the entire market in the Covid disaster from 2020 – because it is effectively almost the entire market. So, while the tracker provides some diversification safety, it is still open to stock market risk. But the chart also shows that the longer the time we look, the more we see ups and downs.

I assume that FTSE 100 suits its earlier results, although it is clearly not guaranteed. After 10 years, we could invest 36,500 pounds (forgetting about jumping years for simplification). At 6.8% per year we could see that it increased to almost 51,800 pounds. And this can then generate about 3500 pounds a year of passive income of 6.8%.

It becomes better and better

After another 10 years, we could see our triple pot to over 150,000 pounds. And it can earn 10,300 pounds a year. Disolving time can tone the results.

After the third decade, our pot can boost to 340,000 pounds – and our passive income to £ 23,400 a year. Is it not amazing, how additional years can they make so much?

None of this is guaranteed. And as followed by an index, he may lose money in the next crisis. But the British stock market has defeated other investments for over a century. And such numbers inspire me to invest for as long as possible.