Becoming a millionaire is the definition of wealth for many Americans. Only around 12 million people in the entire United States have a net worth of at least that much.
While you can become a millionaire by winning the lottery or inheriting a ton of cash, most people won't be lucky enough to have either of these things happen. But that doesn't mean it's impossible to hit the million-dollar milestone. By saving money, anyone can become a millionaire given enough time.
The only question is: How long will it take you to become one of the elite few?
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How long until you'll save $1 million?
The time it takes to become a millionaire depends on how much money you're able to save per month.
The table below shows how long it would take starting from nothing, based on the amount you're able to save monthly, and assuming an 8% return on your investments.
|
Monthly Savings |
Years to Become a Millionaire |
|
$100 |
52.92 |
|
$200 |
44.42 |
|
$300 |
39.50 |
|
$400 |
36.08 |
|
$500 |
33.42 |
|
$600 |
31.33 |
|
$700 |
29.58 |
|
$800 |
28.08 |
|
$900 |
26.75 |
|
$1,000 |
25.58 |
|
$1,500 |
21.33 |
|
$2,000 |
18.42 |
As you can see, the more you can save, the more quickly you'll hit your goal. In fact, things accelerate fast; simply going from $100 to $200 in monthly savings can cut 8.5 years off the time it takes. That's because the more you invest, the more your money works for you, thanks to compound interest.
Can anyone become a millionaire?
The table not only shows how long it could take you to become a millionaire based on your savings, but it also shows most anyone can become a millionaire given enough time.
While it would take you a very long time to hit your million-dollar target if you save only $100 a month, raising your savings to just $300 a month allows you to hit your goal in under 40 years. That means if you start saving in your 30s, you could have $1 million by your 70s.
Most people also increase their savings over time as their income goes up. While you may struggle to save $100 a month at age 20, salary boosts could make it easier to jump up to $400 or $500 by the time you're in your 30s.
The key thing to remember is that small amounts saved consistently over time really can add up to a fortune.
Save as much as you can to hit $1 million ASAP
If you want to become a millionaire, as the table shows, you can cut years off the time it takes even by making a small extra contribution each month. Finding an extra $100 is worth doing if it means becoming a millionaire several years sooner.
