HomeNewsSee Exactly How Much You Need to Save Each Day to Become a Millionaire by Age 65

See Exactly How Much You Need to Save Each Day to Become a Millionaire by Age 65

by Emily Morgan
see-exactly-how-much-money-you-need-to-save-each-day-to-become-a-millionaire-by-age-65
Photo by: Ridofranz

Want to be a millionaire by the time you reach the age of retirement? We’ve got the secret— and no, it doesn’t involve winning the lottery. As it turns out, if you’re under 25, you need to save $3 a day to hit millionaire status by age 65. 

Sounds oddly easy, right? Well, that’s according to financial advisor David Bach. He is the brain behind the book Smart Couples Finish RichIn the book, he outlines the steps couples can take to manage their finances better. In addition, he created a chart that reveals how much money one needs to save, at different ages, to reach millionaire status by 65. 

However, one key point he wants readers to remember is that you need to start saving as early as possible if you wish to be financially secure later in life. 

“Becoming rich is nothing more than a matter of committing and sticking to a systematic savings and investment plan,” he writes plainly in his book. But, he adds: “You don’t need to have money to make money. You just need to make the right decisions — and act on them.”

What Bach leaves out about becoming a millionaire by 65

However, as Insider points out, Bach leaves out an essential detail in his chart: it doesn’t account for taxes. The chart, which is also calculated in American dollars, assumes a 12% yearly return. 

In addition, his findings are several years old. As a result, he doesn’t factor in the inflation many Americans are reeling from right now. Despite all this, Bach’s chart is still an interesting tool for those who want to be more financially mindful. 

According to Bach’s theory, anyone 20 and over should save $2 a day (which comes out to $61 a year and $720 yearly) if they hope to add millionaire to their resume by 65.

In addition, if you’re 25, that jumps to $3.57 a day ($109 per month and $1,304 per year), and for those over 30, that’s $6.35, $193, and $2,317 per day, month, and a year respectively.

Obviously, it gets a little more challenging as you age: 35-year-olds must save $11.35 a day, $345 a month, and $4,144 a year. Then, 40-year-olds should save $20.55 daily, $625 weekly, and $7,500 yearly. 

Then, after you hit 45, Bach says you’ve got to pull out $38.02 a day, $1,157 a month, and $13,879 a year. Finally, once someone is 50, you’ll need to make sure you put remove a hefty $73.49 a day from your bank account. That rounds out to $2,235 a month and $26,824 a year.

Outsider.com