How much you need to save every day to become a millionaire by 65?

Money is what actually drives the world in these modern times. Everything we touch or we feel is somehow related to money and only spending money, be it a relatively small or an extravagantly large sum can help you attain those things.

Everybody wants to be rich, be it filthy rich or comfortably rich, but everybody wants a sizeable amount of cash in their bank accounts. Although everybody wants it, not many people are able to achieve that dream and struggle to reach to this status right up until their death.

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Some people spend so much time trying to be rich or richer than they already are that they forget to actually enjoy any of the money they have amassed, which is simply useless in my opinion. It is very simple guys, if you wish to get rich, then start investing, and start as early as you possibly can.

David Bach, a financial advisor wrote in his book, Smart Couples Finish Rich, that just becoming rich is nothing more than a simple matter of sticking to and committing to any systematic saving as well as an investment plan. He adds that you do not need to actually have money in order to make money.

You will just need to make the right and smart decisions and then act upon them duly. In order to illustrate the actual simplicity behind amassing a great amount of wealth over time, David Bach has created a chart which details exactly how much money any individual needs to be set aside each day, each month or each year in order to have savings of $1 million by the time the individual is aged 65.

The chart automatically assumes that you will be starting this long journey with a total of zero dollars invested anywhere. The chart is also assuming that you will be receiving a 12 percent annual return on any investment that you will be making.

Ramit Sethi, a New York Times bestseller author of the book “I Will Teach You to Be Rich” has stated that the very basic and simple starting point is to simply invest in your respective employer’s 401k plan.

He further added that the individual should also be considering contributing any sum of money towards a traditional IRA, or a Roth IRA, along with individual retirement accounts that have various contribution limits as well as tax structures.

While the total number in the chart below are not to the dot or exact in nature (in simple terms, the numbers do not really take into account any impact of taxes, as well as assumes a 12 percent return on investment which is incredibly high.), they serve the purpose of giving you an excellent idea of how to come up with a bit of extra money or even a few extra dollars every day, and make a huge difference in your savings in the long run, specially more so if you start the saving process at a very early age.

Source: Independent UK

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