How To Make A Million!

How Long Will it Take You to Save a Million Dollars?

You Can Become A Millionaire, But it Takes Time.
Below is a chart of how long it takes to save a million dollars, or in other words, become a millionaire. The two important factors in becoming a millionaire are 1) how much you can save and 2) how well you invest. The table below shows the number of years it will take you to save a million dollars at different monthly investment rates and at various rates of return. Obviously, the more you invest and the more you make on your investments, the faster you reach your goals. However, look at the numbers closely and you'll notice that the number of years it takes you to reach a million dollars will be 5 times less if you maximize your savings rate and your return rate!

How to Read the Chart.
This table can be used in many different ways. One way is to determine the time you have until retirement, choose your estimated investment rate of return (depending on your risk profile), and then find the monthly savings rate that matches your investment return and years until retirement. It will tell you how much you need to save each month to reach a million dollars. If you need 2 million dollars to retire, you can multiply the monthly savings rate by two to find the amount you need to invest each month to reach your goal. A second, and more obvious way, to read the chart is to find the amount of money you save or invest each month, find the estimated return you expect on your savings or investments, and then find the corresponding number of years until you reach one million dollars. No matter how much you will need to retire, this chart will be useful to determine both how long it will take to reach your goal and how much you need to save to reach your goal.

Monthly Savings 2% 4% 6% 8% 10% 12% 14% 16%
$50 177 105 77 61 51 44 39 35
$100 144 88 66 53 44 39 34 31
$150 125 79 59 48 40 35 31 28
$200 112 72 54 44 38 33 29 26
$250 102 67 51 42 35 31 28 25
$300 94 62 48 39 34 30 26 24
$400 82 56 43 36 31 27 24 22
$500 73 51 40 33 29 25 23 21
$750 58 42 34 29 25 22 20 18
$1,000 49 37 30 25 22 20 18 17
$1,250 42 32 27 23 20 18 17 15
$1,500 37 29 24 21 19 17 16 14
$2,000 30 25 21 18 16 15 14 13
$2,500 26 21 18 16 15 13 12 12
$3,000 22 19 16 15 13 12 11 11
$4,000 17 15 14 12 11 10 10 9
$5,000 14 13 12 11 10 9 9 8

The next Free Finance Tip is about Saving Money. Or you can go to Free Finance Tips.

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