Do you believe that saving money is the key to being rich? Are you an idealist who prefers to sticking with what you know versus taking leaps and risking things? Well, it is everyone’s dream to be a millionaire—tell me something I don’t know. But are you really aiming for that goal? Are you being realistic when you tell yourself that you are going to be a millionaire?
Many people, if not all, dream about this but have you ever wondered at what age you will attain this by saving up money? Well, Four Pillar Freedom’s Zach, shared a chart that would show people when they possibly can become millionaires based on their annual savings rate and their age.
Being a millionaire might never be one of your goals but being fancy and well-off in life? Well, you’ve probably thought about that more times than you can count. This is why many people believe that the start of good financial freedom is through saving.
It’s undeniable—saving money is like controlling your budget but is that really the case? Have you ever thought of yourself saving money all of your life to hit that 7-digit personal net worth?
Financial critics, gurus, and professionals don’t actually recommend saving. Why? Because the more you save, the less value you give your money. Money is a liability—in fact—by not doing anything with it, you’re willingly allowing it to lose its value.
Money Advice Service, a website dedicated to personal finances, explains that saving is done truthfully and relevantly. They say that saving should ONLY be done when you don’t have other important things to spend on.
With your savings and your yearly earnings, at what age do you think you’ll become a millionaire?
In this table provided by Four Pillar Freedom, you will see when you will become a millionaire, dependent, of course, of how much your annual savings are:
Be a Millionaire!
|Save this much per
year to be a millionaire…
|If you start at this age…|
What does this mean?
You might be all confused about how it works; however, Zach pointed out that everyone is capable of being a millionaire if they religiously follow healthy saving habits. In fact, it’s possible within a 30-year period ONLY if you are able to invest at least $10,000.00 in a whole year.
Compute that and you will arrive at a savings of $833 per month; maintain that in 30 years and you will become a millionaire.
Zach says that anyone can possibly become a millionaire before turning 65-years-old—the traditional retirement age.
Anyone can become a millionaire before the traditional retirement age of 65 by saving only $4,000 per year starting at age 20.”
It might seem a bit odd and unusual for you to compute but you can refer to this table for you to have an idea on when you will become a millionaire based on how much you earn and how diligently you follow your budgeting plan.
So, what’s important?
You might be too close or too far from your goal. But, if you have started saving, continue it. There are a lot of saving and budgeting techniques that are widely and financially accepted—you just have to follow it and be truthful if you really want to become a millionaire if you are saving an amount of money each month—each year.
Investing, however, is a different story. When you invest, you are putting your money to work for you—you’re not doing anything extravagant, you just let it sit there and you watch it either grow or fall. With investing, there is risk, high risk, perhaps, and often leads to downfall especially if you have little-to-no experience on investing.
Here’s an article to help you differentiate investing over saving money.
Saving, don’t get me wrong, has its downsides, too. As we mentioned above, saving money without actually doing anything with it, decreases the value overtime. It’s like a piece of investment that does not appreciate in value over time—unlike lands and houses. As time passes by, the value of money decreases as it decreases too.
So, check the table out and figure out when you will become a millionaire; share it with your friends and family so they know too when their piece of cake will become a reality.