You could also look for ways to bring in additional cash, like starting a side hustle or seeking out a better paying job. If you earned more than this, you could get by saving even less. That assumes a 6% average annual rate of return. For example, if you don't have any savings right now and you can't afford to set aside $1,179 per month, maybe you aim to contribute $595 per month and become a millionaire by 2060 instead. If you don't think you can save enough by 2050, push your timeline back a little until you find something that works. It's up to you to decide on a retirement timeline that suits you. There's no reason you have to save $1 million by 2050. But the good news is, you're probably alright if you can't hit these goals. The savings targets in the table above can be intimidating, especially if you don't have much money saved up yet. ![]() What if I can't save as much as I need to? That's why it's best to contribute as if you were only going to earn a 6% average annual rate of return if you can afford to do so. If it doesn't pan out, you could end up with a lot less than you expected. ![]() All you'd have to do is sit back and let the money you've already invested continue to grow.īut as I mentioned above, it's risky to plan for a high rate of return to make up for a lack of personal contributions. With a 10% average annual rate of return, you'd end up with over $1.4 million without contributing another cent over the next 28 years. It's also worth noting that if you've already saved $100,000, you may not have to contribute any more money to become a millionaire by 2050. Saving $6 per month may not seem like that much, but over the course of 28 years, that adds up to over $2,000. Worst-case scenario, you'd have to save about $1,179 per month, but if you have as little as $1,000 saved up already, you'll see that savings target drop by $6. ![]() As you can see, the path to $1 million by 2050 can look a lot different for each person.
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