Skip to site content
The Show

How to Become a Millionaire

A million dollars seems like such a magic number, but what does it take to get you there?  It may be true that saving the first $100,000 is the hardest, but you have to start somewhere.  This week Brian and Bo give you the basic steps necessary to becoming a millionaire by retirement age.  The choice is yours, start early or start late…it can be done!!

According to Dr Thomas J. Stanley’s recent article titled “Wealth is Attracted to People Who Respect Money“, only about 8% of the households in the US have a net worth of over $1,000,000.  This is a small percentage of the population so let’s dive into what it takes to make more millionaires.

  1. Pay yourself first – this means set aside 15-20% of your gross income every month.
  2. Take advantage of your employer’s free money – the retirement match is a 100% return on your money!
  3. Dollar Cost Averaging is your friend – this takes the emotion out of investing.
  4. With every pay raise or debt that you pay off, raise your savings amount – we call this “Forced Scarcity”.
  5. Quietly celebrate your milestones – your first $5k, $10k, $50k, $100k, and so on.

If your goal is to be a millionaire, it is possible (and relatively easy) to accumulate $1,000,000 by age 65.  Lets use a 10% interest rate and below is the required monthly savings broken down by age:

Current age – 1                 Required Monthly Savings – $14.00

Current age – 10               Required Monthly Savings – $35.00

Current age – 20               Required Monthly Savings – $95.00

Current age – 30               Required Monthly Savings – $263.00

Current age – 35               Required Monthly Savings – $442.00

Current age – 40               Required Monthly Savings – $754.00

Current age – 45               Required Monthly Savings – $1317.00

Current age – 50               Required Monthly Savings – $2413.00

Current age – 55               Required Monthly Savings – $4882.00

Current age – 60               Required Monthly Savings – $12914.00

Current age – 65               Required Monthly Savings – $79583.00

As you can easily see, the earlier you start, the easier it is to reach this goal!  Investing consistently for the long-term yields amazing results.  Stay consistent and build that army of dollars that will work hard for you in retirement.

Enjoy the Show?

Where You Can Watch and Listen:

Subscribe on these platforms or wherever you listen to podcasts for new episodes every Friday, live streams every Tuesday at 10am CT, and new highlight clips throughout the week.

Related Content

Free Resources

Financial Order of Operations®: Maximize Your Army of Dollar Bills!

Here are the 9 steps you’ve been waiting for Building wealth is simple when you know what to do and…

View Resource

How Much Should You Save?

How much of your income can you replace in retirement? You can replace different portions of your income in retirement…

View Resource

Tax Guide 2023

Updated for 2023! Ever wonder what the highly trained professionals use to tax plan? Wonder no more! We’ve assembled the…

View Resource

Articles

Is a High Yield Savings Account Still the Best Place to Keep an Emergency Fund?

, ,

Read More

Are We Financial Misers for Investing 60% of Income in Your Mid-20s?

, ,

Read More

How Everyday 30-Year-Olds Can Stay on the Path to Becoming Millionaires!

, ,

Read More

Financial FAQs

Courses & Tools

How about more sense and more money?

Check for blindspots and shift into the financial fast-lane. Join a community of like minded Financial Mutants as we accelerate our wealth building process and have fun while doing it.

https://moneyguy.com/wp-content/uploads/2023/10/accent-icon-book.png

Millionaire Mission (Brian’s Book)

Buy Now
https://moneyguy.com/wp-content/uploads/2023/10/accent-icon-math.png

Know Your Number Course

Buy Now
https://moneyguy.com/wp-content/uploads/2023/10/accent-icon-pencil.png

The Money Guy Net Worth Tool

Buy Now

Recent Episodes

It's like finding some change in the couch cushions.

Watch or listen every week to learn and apply financial strategies to grow your wealth and live your best life.

REACT WorstHousingAdvice B

Financial Advisors React to the Worst Housing Advice on TikTok

Watch Now
401k Sucks

What Should I Do If My 401(k) Sucks?

Watch Now
Financial Planning

Financial Planning 101 (By Age) – The Complete Guide to Financial Success

Watch Now