Want To Know What Age You Will Become A Millionaire? This Chart Has The Answer
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Are you currently saving money in hopes of one day becoming a millionaire? It’s a lofty goal, but with a budget and dedicated savings plan, your savings account could eventually eclipse seven figures.
Having a million dollars in the back feels like a life-changing amount of money – even though people think far less money will change their lives – and the quicker a person can get $1M or more in the bank, the quicker they can retire.
In fact, some people have retired before the age of 40 after banking that many zeros.
Want to know at what age you will become a millionaire? Well, how close you are to hitting the million-dollar mark depends on how much you’re saving each month. If you’re socking away $500 per month, you could become a millionaire in 33 years, depending on your age and when you started saving.
To get the best answer to how to save money to be a millionaire and when you’ll be able to retire, consult this helpful chart created by the personal finance website Four Pillar Freedom.
The website developed the “Million Dollar Age Grid” shows at what age you can become a millionaire, based on your yearly savings and what age you start saving.
Four Pillar Freedom explains…
“This grid assumes you start with $0, and your savings are invested at a 7% annual interest rate. For example: If you start saving $24,000 every year starting at age 30, you will have one million dollars by the time you are 50.”
Let’s take a look at the “Million Dollar Age Grid” from Four Pillar Freedom.
Here are some interesting facts to keep in mind based on the chart.
- Age Doesn’t Matter. No matter what age you start, by saving $10,000 per year, you can become a millionaire in 30 years.
- Even 50-year-olds with $0 in savings can become millionaires. A 50-year-old with a net worth of $0 can become a millionaire by 63 through saving $50,000 per year. This might seem unreasonable, but keep in mind this is the age where most people are near their peak earnings.
If your savings plan needs a boost, check out the five expenses to cut right now to give your savings a boost and two ways to boost your savings based on science.