This is how much you need to save every day to become a millionaire by the time you're 65
Aisha Nozari
Featured Image Credit: D-Keine/Getty / Jose Luis Pelaez Inc/Getty
Yes, you could still be in with a chance of becoming a millionaire by 65 if you save a bit of money every day.
It may be near impossible for young people to think about hopping on the property ladder anytime soon, but apparently, becoming a millionaire might be an easier feat.
And it's not as much money as you may think, although, if you're over the age of 25, you'll have to get cracking.
Advert
Financial advisor David Bach - who wrote a book about money management called Smart Couples Finish Rich - has come up with a chart working out how much people of different ages need to save if they want to be a millionaire by 65.
Bach pointed out that starting to save as early as possible is key, as per Business Insider - sorry to any 64-year-old's who may have just stumbled across this.
But just how much cash do you need to stash away each day to be in with a chance of millionaire status?
Well, Bach writes in his book: "Becoming rich is nothing more than a matter of committing and sticking to a systematic savings and investment plan.
"You don't need to have money to make money. You just need to make the right decisions - and act on them."
However, Business Insider points out that Bach’s chart (which is calculated in dollars) doesn’t take taxes into account and his estimations assume a 12 percent annual return. Plus, it’s more than a few years old, so doesn’t take into consideration the cost of living crisis that’s currently bleeding us all dry.
That said, it’s still a nifty saving template for anyone partial to ten Starbucks visits a week - especially seeing as Bach advises against buying small daily treats like coffee and instead saving the money.
According to Bach’s calculations, anyone who is aged 20 should try and save $2 a day (which totals $61 a year and $720 annually) if they want to be a millionaire by 65.
If you’re 25, that jumps to $3.57 a day ($109 per month and $1,304 per year) and for all you 30 year olds, that’s $6.35, $193 and $2,317 per day, month and year respectively.
35 year olds will need to save $11.35 a day, $345 a month and $4,144 a year while 40 year olds are advised to save $20.55 daily, $625 weekly and $7,500 annually.
45? Better make that $38.02 a day, $1,157 a month and $13,879 a year. And if you’re 50, you’re cutting it pretty fine, so you’ll need to make sure you put aside $73.49 a day, $2,235 a month and $26,824 a year.
There you have it. So, put down the donut, delete the delivery apps and consider cutting your pub visits down from once a day to once a week.