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Want to build a life-changing second income? For me, the best way to chase a steady and steady income – and one that requires much less effort than popular chaos – is to invest in the stock market.
Last year, the FTSE 100 it brought a whopping 25% return to investors. Of course S&P 500 For the US stock index, the figure was 18%. Those who bought shares in early 2025 could have supercharged their portfolios, increasing their chances of eventually enjoying a big income.
The return was larger than usual, indeed. But even at normal rates, small investments can generate huge wealth over time. I FTSE All-World Index large and mid-cap stocks have delivered an average annual return of 12% over the past five years.
Here’s how investing just £100 in global stocks can end up generating £23,455 in second income with little effort.
Generating wealth
One of the easiest ways to invest in stocks is through an index tracker fund. They allow people to own a piece of many different companies, spreading risk and providing exposure to a wide variety of growth and income opportunities. And all at low cost, too.
I Vanguard FTSE All-World ETFfor example, it tracks the performance of 3,657 stocks across regions and industries. It also has a recurring fee of 0.19%. If it continues to deliver a 12% annual return for years to come, a £100 monthly investment over 30 years will eventually turn into £335,074.
If invested in 7%-yielding dividends, a portfolio of this size would generate an income of £23,455 a year.
Buying one stock
Rather than gaining exposure to the broader stock market through a fund, investors can also choose to invest directly in companies. This requires more effort than simply sticking your money into an index tracker. However, it can lead to better results.
I think a portfolio of 15-20 stocks offers the best diversification to spread the risk and aim for big returns. Games Workshop (LSE:GAW) is one of the best growth stocks in the FTSE 100 that I have bought for my own portfolio.
Thanks to its leading role in the fast-growing market, the tabletop gaming specialist continues to enjoy growing profits as the retail sector struggles. Last year it delivered a total return of 47%, beating the performance of the broader FTSE index.
Some price gains in 2026 mean the average annual return over the last decade is 45%. If you were to drip £100 every month into Games Workshop shares from then on, you’d now be sitting on a cool £218,409 (assuming dividends are reinvested).
Can Games Workshop keep going up?
Past performance is not always a reliable guide to the future returns of any share. In the case of Games Workshop, the return may have an increased competitive effect that reduces sales and margins. It may also face rising cost pressures (including tax-related costs).
However, I am sure Warhammer the producer can end up being more efficient. The fantasy gaming market has huge scope for growth, and Games Workshop is growing to take advantage of this. Media is interactive like this Amazon creating film, TV, and video game content can generate significant licensing revenue and boost sales of its miniseries and boxed games.
