Monthly Savings Required to Reach 1,000,000 Dollars?

Want to know the monthly savings required to reach 1,000,000 dollars? How much monthly savings required to earn your first $1,000,000? Today, here at Investment Total, let us study how to acquire $1,000,000 in a specific period of time and the rate of return required to get that amount. Rate of return in this topic means, the interest earned per month and per year and the calculation is based on the effect of compound interest.

Related: How to Invest Millions of Dollars?

I am using financial calculators – the formula of future value annuity. The data are not representing or making any guarantee that you can reach $1,000,000 after have you have invested your money, because, there are risk involved that you must be aware of.

Tips in Saving Money to Have 1,000,000 Dollars

A $1,000,000 goal won’t be realized if you don’t know how to value every single dollar cent. A one million dollar started from coin, if you have coins, how do you treat it? Would you waste it or just take it for granted?

I am telling you this, unless you know how to manage your finances, you won’t get a million dollars, maybe in your dreams while sleeping. Let this article guide you about savings, a savings is just a part of getting rich, however, saving money is not enough to make yourself rich and millionaire.

What’s my point? If you don’t know how to save or not disciplined enough to save, you will encounter difficulties and hardships in getting a millions of dollars. Therefore, savings and managing money should be learn if you’re dreaming to retire a millionaire.

How to Manage Your Money to Make $1,000,000?

If you know how to manage every dollars you earned, skip this topic and proceed to the calculation to know how much monthly savings required to reach $1,000,000. If you are really interested to know about money management, try to read the guide on how to manage money properly in this section.

If you’re trained to save, investing is easy for you. You won’t get a $1,000,000 by just saving. You have to invest it, and that’s the secret of the rich people. Therefore, if you want to get rich, learn how do rich people do with their money? How do rich people handle their money, manage their money and how do rich people getting richer? The answer to the last question is – by investing.

There are different types of investments you can choose, there is a stocks, mutual funds, bonds and trust accounts in the banks. Just go somewhere especially financial firms like Fidelity Investments, and ask them on how to invest your money, aside from your 401k plan contributions, maybe you are interested also in other investment vehicles.

Note: Monthly savings required in this data doesn’t mean you only have to save. Put that savings in the investment vehicle that earns interest based on “rate of return”. Our goal is to acquire $1,000,000.

Monthly Savings Required to Reach 1,000,000 Dollars?

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 8%
Number of Investing Years: 10
Monthly Savings Required: $5,752.46

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 10%
Number of Investing Years: 10
Monthly Savings Required: $5,228.78

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 12
Number of Investing Years: 10
Monthly Savings Required: $4,748.68

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 15
Number of Investing Years: 10
Monthly Savings Required: $4,104.34

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 18
Number of Investing Years: 10
Monthly Savings Required: $3,542.89

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 23
Number of Investing Years: 10
Monthly Savings Required: $2,767.37

20 Years Investing Period

The computation above are about “10 years investing period”. Let us know how much monthly required to save if the years to stay invested is 20 years. Do you think the monthly savings required will increase or decrease? Let us know it by this sample calculation;

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 5%
Number of Investing Years: 20
Monthly Savings Required: $2,520.22

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 8%
Number of Investing Years: 20
Monthly Savings Required: $1,821.02

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 10%
Number of Investing Years: 20
Monthly Savings Required: $1,454.97

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 12%
Number of Investing Years: 20
Monthly Savings Required: $1,156.57

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 15%
Number of Investing Years: 20
Monthly Savings Required: $813.46

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 18%
Number of Investing Years: 20
Monthly Savings Required: $568.33

Target Goal: $1,000,000
Compound Interest: Annually
Rate of Return: 23%
Number of Investing Years: 20
Monthly Savings Required: $310.04

Conclusion: if you invest earlier, your monthly savings required to acquire one million dollars is lower amount compare to the monthly savings account required when you delay your investment. It simply means, that you have to invest early because the early you invest the small amount is only required.

Also Read: Make Millions Using Compound Interest in Investing Money

Final Thought:

Now you know the monthly savings required to reach 1,000,000 dollars. Save early so that you will just save small amount of money. Saving small amount is very easy! If you plan to retire millionaire, you should prepare yourself by investing small amount of money every month. For as low as $310.04 you can become a millionaire after 20 years. Invest $310.04 in investment vehicles that earns 23% per year. You can invest in stocks or mutual fund equity type.

Interesting Topic: Worry Free on One Million Dollars for the Rest of Your Life?

Money Quote and Saying for the Day:

The mark of true wealth is determined by how much one can give away – T. Harv Eker, author of Scerets of the Millionaire Mind