Here's How to Save Your First $1 Million by Age 50

Some people have the goal of amassing $1 million in their lifetime. I'm here to tell you that you can do it by age 50.

Don't believe me? You might think that sum is impossible because you only earn an average income and therefore can't save thousands of dollars per month to meet that goal. But you don't need to save thousands of dollars a month to be a millionaire by 50.

You do, however, need to start saving money at a fairly young age. And there's another important move you need to make if you want $1 million to your name by the time your 50th birthday arrives.

It's all about what you do with your money

Whether you're saving money for retirement or another goal, one of the most important things to do is begin at a young age. The more time you give your money to grow, the more wealth you're likely to end up with.

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Many people aim to have $1 million by age 65 or so -- not necessarily by age 50. However, if you'd like to hit that goal by 50, you can potentially do so if you also invest your money in stocks.

Over the past 50 years, the stock market's average annual return has been 10%. That return accounts for years when the market did great, and also years when the market suffered a slump. If you're investing over a longer period of time, it's not unreasonable to expect a 10% yearly return in your portfolio -- even if you don't know much about picking stocks.

In fact, one easy investing strategy is to load up on shares of an S&P 500 ETF. This basically has you investing in the broad market without having to research companies individually.

Let's assume you graduate college at age 22 and start working full-time. That gives you a 28-year savings window until age 50. If you invest $625 a month and your portfolio gives you a 10% yearly return, you could end up with just over $1 million in time for your 50th birthday.

Of course, saving $625 a month isn't exactly a walk in the park. That's $7,500 per year you're parting with. But the typical worker's salary is about $60,000, according to the Bureau of Labor Statistics. Saving $7,500 per year means parting with 12.5% of your pay if that's the wage you earn.

Meanwhile, financial experts generally recommend saving 15% of your salary or more -- at least in the context of building a retirement nest egg. So if you're saving 12.5% of your pay, it's a lot of money, but it's not an unreasonable sum to set aside each month.

Don't worry if you aren't a millionaire by 50

Getting to $1 million saved by age 50 is certainly a milestone worth working toward. If you manage to achieve that goal, it should give you some peace of mind that you're on track for a comfortable retirement.

But also, don't sweat it if you're 50 and you don't have anywhere close to $1 million. There's no rule that says you need $1 million in retirement savings, or general savings.

What you should do, though, is save as much money as you can each month -- whatever that means for you. And if you're working toward a long-term goal, you should also aim to invest your money in the stock market so you can benefit from generous returns that get you closer to the savings milestone you have in mind.