How Long Does It Take to Save a Million Dollars?
The Fastest Way to Save a Million Dollars is to Maximize Returns and Your Savings Rate
You Can Be A Millionaire if You Save, But it Takes Time. Below is a chart of how long it takes to save a million dollars. 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 savings amounts 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.
Years To Save One Million Dollars
See Also: Money Saving Ideas