What does it take to be a millionaire? It may surprise you to learn how quickly you can accumulate a million dollars. Use this calculator to determine the annual amount you would have to set aside each year to reach a million dollars and reach your goal to be a millionaire.
Using the “How Much to Save to Become a Millionaire” Calculator
The million-dollar savings calculator from Money Help Center is not just for dreamers. This free calculator gives you a relatively accurate and bias-free idea of how you can join the ranks of millionaires. If you want to use the calculator to save up, keep in mind the following tips to get to a million dollars:
1. Start Early
If you start in your 20s, you may need to put aside under $500 each month to reach a million dollars by the time you’re ready to retire. If you wait until you’re in your 40s, though, you may need to put aside more than $1,200, and you may need to retire a bit later to reach those seven digits.
The secret is compound interest. When you put money aside in savings, that money earns interest. As your money grows, the interest you’re earning earns interest. The more time you have to save, the more you can rely on compound interest to help you increase your savings. Even if you did not start to save early, though, start saving today. The sooner you begin, the sooner you can grow your money.
2. Give Yourself Enough Time to Save
It can take 30 years or more to save up a million dollars, depending on how much you can set aside and how you invest. Don’t expect to make millions in a few years.
3. Use Every Advantage You Can
If you have employer 401(k) matching, maximize this advantage, because it allows you to get extra money to invest, which helps you reach a million dollars sooner. If you can invest in tax-protected investments, this can also help you save faster.
4. Use Other Calculators to Help You Save, Too
Explore the Money Help Center calculators, which can help you budget and can help you find ways to save money, so you can put it toward your goal. Also, to get you started on your journey, learn how you can calculate your net worth.
5. Don’t Live the Millionaire Life Too Soon
One of the biggest dangers to your goal of becoming a millionaire is overspending. For every dollar you overspend now, you lose not only that dollar, but also all the interest it could have been earning you. Set aside some money each month for fun experiences so you can enjoy life now, but live below your means so you have money to save for later as well.
6. Keep in Mind the Limitations and Focus on Your Long-Term Goals
There will be market downturns, and you may experience losses that prevent you from contributing for a while. Don’t expect the sailing to always be smooth, and keep your eye on the finish line.
With these tips, you’re well on the journey toward your first million dollars. With Money Help Center and your determination, you can get to your money goals.