Young people are pretty confident about their financial futures. A recent survey found that 53 percent of millennials expect to become millionaires at some point in their lives if they aren’t already.
While 23 percent believe they’ll hit $1 million by age 50 or older, many expect to get there more quickly. A full 19 percent say they’ll become a millionaire by age 40 and another 7 percent predict it’ll happen by 30.
But what if you want to speed up the process and reach that milestone in the next 15 years? It could be possible, if you’re willing to work for it — and put away much more each month than the average American.
Using Investopedia’s millionaire calculator, you can find how much you’d have to save each month to become a millionaire by 2033. Here’s how much you’ll need to put away, depending on the amount you already have invested.
To become a millionaire in 15 years with no savings:
With a 4 percent rate of return: $4,063.55 per month
With a 6 percent rate of return: $3,438.57 per month
With an 8 percent rate of return: $2,889.85 per month
To become a millionaire in 15 years with $10,000 in savings:
With a 4 percent rate of return: $3,249.88 per month
With a 6 percent rate of return: $2,638.21 per month
With an 8 percent rate of return: $2,105.20 per month
To become a millionaire in 15 years with $20,000 in savings:
With a 4 percent rate of return: $2,436.21 per month
With a 6 percent rate of return: $1,837.85 per month
With an 8 percent rate of return: $1,320.54 per month
The average annualized total return for the S&P 500 index is more than 9 percent. But it’s important to keep in mind that these calculations don’t account for the many variables that can affect wealth over several decades, including windfalls, emergencies and rises or dips in the market.
Of course, saving hundreds or thousands a month is an ambitious goal. Even $1,000 a month is more than most Americans can manage. But getting into the habit of saving any amount will be great for you in the long run.
