How difficult is it to become a millionaire? It’s probably not as hard as you might think if you plan ahead. Author of “Smart Couples Finish Rich”, David Bach, came up with a chart showing how much money people at different ages should set aside each day in order to save a million dollars at the age of 65. Following is a transcript of the video.
Do you want to become a millionaire? Financial advisor David Bach says the key is to start investing as early as possible. To prove how important time is, Bach calculated how much you’ll need to invest each day in order to save $1 million by age 65. Here’s a chart showing how much you should save, depending on how old you are when you start.
For simplicity, the calculations assume a 12% annual return and don’t take taxes into account. So where do you start? Experts recommend to start investing in your 401k or Roth IRA.
Bach also advises to refrain from spending on small daily purchases like buying coffee every morning, and instead invest that money. Decades from now, that money will be worth enough for you to buy more than just one coffee.
Editor’s Note: This video was first published on December 28, 2016.
Courtesy Business Insider