If there’s one thing that we can all universally agree upon, it’s that having money is essential for leading a good life. While wealth won’t bring happiness, it acts as a buffer in times of need and allows you to chase opportunity with greater efficacy.
But how much money do we actually need? Although placing your spare cash into investment seems to be the common trait among the wealthy, how much money would we need to set aside to retire a million at age 65?
Start as early as you can
Regardless of what age money becomes important to you and your lifestyle, it’s essential to start saving immediately. It goes without saying that the earlier you begin putting money back for a later date, the safer you will be when retirement years roll around.
The best way to get ahead is to invest in a 401(k) with your place of work. In most instances, your employer will match the amount of money you set aside; Moreover, it’s imperative to seek guidance about Roth IRA and standard IRA investments. While these topics may seem like complex financial paradigms, they’re essential for abundance down the road.
But let’s cut down to the chase: How much money should you invest per day to become wealthy at 65? According to the author of the book Smart Couples Finish Rich — David Bach — it’s less than you think.
Bach created a “building a million-dollar retirement account” chart that illustrates various age brackets and how much they should save daily. When adjusting for a consistent rate of 12% return on their money, the chart looks like this:
- Age 20: Daily savings of $2.00
- Age 35: Daily savings of $11.35
- Age 45: Daily savings of $38.02
- Age 55: Daily savings of $156.12
As you can see, becoming a millionaire does not have to be a daunting task to accomplish. While the young have the advantage in Bach’s chart breakdown, you can retire a millionaire regardless of your starting age.
Daily habits that you can implement to become a millionaire
Becoming wealthy later in life is a matter of patience and consistency applied every day. Do you have actions or habits that may be sabotaging your financial future? Use this chart below and see if you’re guilty of any of these actions:
- Buying expensive coffee
- Opting for name-brand clothing or jewelry
- Investing into stocks that you’re unfamiliar with
- Paying monthly for services that you rarely use
- Wasting gasoline on trips
- Eating out regularly instead of cooking meals
- Impulsively purchasing new gadgets and electronics
If you’re guilty of these actions, it’s OK! According to Bach, all you have to do is take the money you would spend on these items and put them into an investment account. By creating this small habit, you create impressive financial success in your future.
