Want to be a millionaire someday? Here is how to get it done.
According to CNBC, if you start saving $500 a month you could be a millionaire as soon as 2046. Thanks to the power of compound interest, any money you invest today can be wind up being worth more than a lot of money invested later.
The best way to ensure finical stability is to start early.
Estimates show that if you save 1,000 a month:
- With a four percent rate of return, you'll hit the million mark after 37 years.
- With a six percent rate of return, you'll hit the million mark after 30 years.
- With an eight percent rate of return, you'll hit the million mark in 25 years.
- With a ten percent rate of return, you'll be a millionaire by 2039.
And if you can manage it, saving $6,000 a month will get a million in only 10 years.
Want to find out how much to save to hit that mark sooner? Click here to use CNN's millionaire money calculator.
These calculations don't account for other variables that may affect your wealth over several decades, like emergencies and market changes. Additionally, this kind of saving is too ambitious for many Americas. However, attempting to follow this model and starting early is the best way to ensure that you'll have enough to retire comfortably.
Seek out professional accounting help to figure out what accounts are best to use for your situation.
Photo Source: The Harlem Times
When You'll Become a Millionaire if you Save 1000 Per Month [CNBC]
Millionaire Calculator [CNN Money]