How hard is it to be a millionaire? If good planning is made, it is probably not as difficult as it might be thought, and even quite easy.
David Bach, author of the personal finance book Smart Couples Finish Rich, drew up a chart showing the amount of money that people of different ages should set aside every day to reach the goal of a $ 1 million unit at age 65.
Famous finance writer Bach said that the biggest step towards achieving the goal is to start saving as early as possible, and shared his calculations to prove how important time is.
The chart below shows how much money you need to save, daily, monthly and yearly, depending on how old you are.
For simplicity, Bach states that the calculation is based on a 12 percent annual return assumption and taxes are not taken into account.
According to this calculation, when you reach the age of 65 to reach the target of $ 1 million savings;
61 per month for 20 years
109 per month for 25 years
193 per month for 30 years
625 per month for 40 years
For 55 years, you only need to save 4,749 dollars a month.
If you missed the age range you need to start saving, it’s no problem. For example, if you are now 25 years old, you can quickly compensate for the amount you need until this age and start completing daily or monthly goals for the next 5 years up to 30 years of age.
When you start to evaluate your savings by making the right investments, remember that after a while, the money you earn from your investments will earn you money and your investments will start to grow very quickly.