How Much Money You Need To Save Each Day To Become A Millionaire By Age 65
Getting rich doesn’t happen overnight. It takes time, patience, and a well-executed plan to become a millionaire and much more. In fact, you don’t even need that much money to make money. You simply need to make good decisions and have good judgment about anything and everything concerning your finances.
Start Saving Early
The younger you start investing, the more money you can accumulate by the age of 65. For example, if you start at the age of 20, saving $2 per day will net you $1,000,000 by the time you hit 65. If you start 5 years later, you’ll have to save $3.57 to hit your retirement mark. What is great about starting to save early is that the amount you set aside isn’t big enough to affect your lifestyle.
Find Steady Growth Investments
The best starting point is to invest in an employer-sponsored 401K plan. These plans are virtually risk-free and can grow your money faster than traditional investment vehicles and savings accounts. In addition, contribute a portion of your monthly income to a Roth IRA or traditional IRA. Be sure to understand the different contribution limits as well as the tax treatment for these investments.
Start a Business
There is no faster or more self-gratifying way to build wealth than to solve a problem and start your own business. It could be an existing hobby that you could turn into a business, or an entirely new market you can create. Regardless, make sure you’re offering something valuable and unique.
Becoming a millionaire by age 65 isn’t an impossible feat for low-income and middle-class families who are living off paycheck to paycheck every month. With solid financial footing, ironclad discipline, and an effective long-term plan, you can make $1,000,000 or even surpass it by the time you’re ready to retire.