Behold. The million dollar grid.
This grid shows how many years it will take you to save $1 million based on how much you save each year and your annual return on your investments.
The grid assumes you are starting at $0.
An Example Using the Grid
Here’s an example of the math behind the grid. If you save $20,000 per year and invest these savings at a 5% interest rate, you can be a millionaire in 25 years:
Some Interesting Observations
- Starting with $0, you can become a millionaire in 30 years by saving $1,000 per month and investing it at a 5% annual interest rate.
- You can also become a millionaire in 30 years by saving only $500 per month (so $6,000 per year) and investing it at a 10% annual interest rate.
- The more you save, the less investing returns influence how many years it will take to become a millionaire. For example, by saving $50,000 per year and earning 5% annual returns, you’ll be a millionaire in 14 years. By increasing your annual investment returns to 10%, you’ll only become a millionaire 3 years sooner…
- …The opposite is also true. The less you save, the more influential investing returns become. By saving just $2,000 per year with 5% returns, it will take you 66 years to become a millionaire. But by saving that same amount with 10% returns, you can become a millionaire in only 41 years.
- Even with pitiful 2% annual returns, you can become a millionaire in just over 30 years by saving $2,000 per month (so $24,000 per year).
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