Helping Young Adults to Become Millionaires™

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HOW MUCH DO I NEED TO SAVE TO BECOME A MILLIONAIRE?


How do you eat an elephant?
Answer: One bite at a time.

How do you become a millionaire?
Answer: One day at a time.


Think about saving to become a millionaire in small bitesone day at a time—how much must you save each day to become a millionaire? Thinking about saving in small bites makes it easier to identify how you can get the money to save.

Depending upon your current age (and assuming that you have no savings at present) the following table lets you estimate the AVERAGE daily saving that you need to become a millionaire, and it illustrates the power of the TEEN FACTORTM. when combined with what Albert Einstein called, "The most powerful force in the universe."

For those under age twenty, the TEEN FACTOR™ provides a quick estimate of how much you need to save to become a millionaire. It works as follows: if you are between age 15 and 20, divide your age by 4. That is how much you need to save each day (if you invest it at 9 % p.a.) to have a million dollars by age 65. For example, a 16 year old only needs to save $4 [Age 16/4]...(approximately $1,400/year). Below is a table with greater detail.

NOTE: The following amounts are fixed for life if you keep saving this same amount each year and if you invest your savings at 9% p.a. compound rate of return. For example: If the sixteen year old begins saving $4/day at age 16, this amount never increases during his or her lifetime if it is invested for a long run compound return of at least 9% p.a.

As a teen, you only need to save the price of a latte each day....IF YOU PROCRASTINATE, at age 55, a person needs to save the price of a microwave or an expensive cell phone each day to have $1 million at age 65.

NOTE: The following amounts are fixed for life if invested at 9% p.a.
Age at which Saving Begins Daily Savings Monthly Savings Annual Savings
1 $1.00 $30.25 $363
5 $1.30 $39.30 $471
10 $2.20 $66 $793
15 $3.36 $101 $1,227
16 $3.67 $110 $1,340
17 $4.05 $122 $1,478
18 $4.37 $131 $1,595
19 $4.75 $143 $1,734
20 $5.21 $156 $1,901
25 $8.10 $243 $2,960
30 $12.70 $371 $4,635
35 $20.10 $603 $7,336
40 $32.35 $970 $11,806
45 $53.55 $1,607 $19,546
50 $93.31 $2,800 $34,058
55 $180.32 $5,410 $65,820
 
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