How much money you need to save each day to become a millionaire by your mid-60s.
July 17, 2019
source: Business Insider
I’m sure there are very few of you who would turn down the chance to become a millionaire, if the opportunity were to arise. Most of us could all do with a bit of extra money, and there’s nothing wrong with aspiring to possess the finer things in life. You might think that becoming a millionaire is an unrealistic fantasy, but saving specific amounts of money by each age could lead to you becoming a millionaire by your mid-60s.
Most self-made millionaires would agree that two things are integral if you want to become a millionaire at some point in your life. The first is having a consistent savings plan, and the second is making smart investments. Although many entrepreneurs strike it rich seemingly overnight, us “average” folk can be just as financially successful — if you go about it in an intelligent way.
Take a look at this chart (from David Bach’s Smart Couples Finish Rich), for instance. Beginning at age 20, it explains how much money you need to put away each day in order to be a millionaire by age 65. At age 20, one only has to put away a mere $2 per day to follow the savings plan. In this day and age, that’s less money than buying a coffee each morning. By age 40, you’d need to save the realistic sum of $20.55 a day to follow the plan. By giving up small luxuries like drive-thru coffees and buying lunch every day, it’s easy to see how anyone who follows this plan could be well on their way to reaching the coveted millionaire status.
Of course, this savings plan doesn’t even include investment opportunities. Some people have an eye for smart investments and follow the stock market religiously. However, you don’t need to be one of these types in order to profit from investments. If you have even a small amount of capital, you can seek the services of a stock broker or investment specialist to help your money go as far as possible. Couple a few smart investments with this savings plan, and who knows — you might easily be able to accumulate $2 million by the time you’re 65.
If you’re curious to learn more about savings plans and investments from real people who have actually seen similar (or even better) results, there are a ton of excellent books on finance and personal wealth. One of the best-selling finance books of all time is Rich Dad, Poor Dad by Robert T. Kiyosaki. The Wealthy Barber by David Chilton is another excellent read to assist with successful financial planning. And in case you get through those two titles and are eager for more, another great book is The Automatic Millionaire by David Bach.
You may assume that becoming a millionaire is a feat that only a select few can achieve. However, with some discipline, planning, and a bit of research, you, too, might be able to join the millionaire’s club one day. So print out this chart, and get to work!