How much money you need to save each day to become a millionaire by age 65
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.If you want to get rich, start investing — and start as early as you possibly can.
"Becoming rich is nothing more than a matter of committing and sticking to a systematic savings and investment plan," financial adviser David Bach writes in his book "Smart Couples Finish Rich."
"You don't need to have money to make money," he writes. "You just need to make the right decisions — and act on them."
To illustrate the simplicity of building wealth over time, Bach created a chart (which we re-created below) detailing how much money you need to set aside each day, month, or year in order to have $1 million saved by the time you're 65.
The chart assumes you're starting with zero dollars invested. It also assumes a 12% annual return.
You can start by investing in your employer's 401(k) plan — an easy, automatic contribution — and then consider contributing money toward a Roth IRA or traditional IRA, individual retirement accounts with different contribution limits and tax structures.
While the numbers in the chart below are not exact (for simplicity, it does not take into account the impact of taxes, and 12% is a high rate of return), it illustrates that a commitment to saving — even a few dollars a day — can make a huge difference in the long run.
Next time you consider running to Starbucks for a $4 latté, think about this chart and consider redirecting that coffee cash to your savings:
Read more:
• These are the 25 richest people in Britain
•The 26 major cities with the highest quality of life in the world
• 24 TV shows that were just canceled
Read the original article on Business Insider UK. © 2017. Follow Business Insider UK on Twitter.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments