This grid shows at what age you can become a millionaire, based on your yearly savings and what age you start saving. 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 time you are 50.
Here’s the math behind that:
Some Interesting Observations
- No matter what age you start, by saving $10,000 per year you can become a millionaire in 30 years
- No matter what age you start, by saving $20,000 per year you can become a millionaire in 22 years
- No matter what age you start, by saving $40,000 per year you can become a millionaire in 15 years
- 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.
- Anyone can become a millionaire before the traditional retirement age of 65 by saving only $4,000 per year starting at age 20.
My favorite free financial tool I’ve been using since 2015 to manage my net worth is Personal Capital. Each month I use their free Investment Checkup tool and Retirement Planner to track my investments and ensure that I’m on the fast track to financial freedom.
My favorite place to find new personal finance articles to read is Collecting Wisdom, a site I created that collects the best personal finance articles floating around the web on a daily basis.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.