According to CNBC, here’s how much you need to save each month to become a millionaire by 67 years old.
If you’re starting in your 20s, you need to put away $415 a month.
If you’re starting in your 30s, you need $651 a month.
If you’re starting in your 40s, $1,300 is your magic number.
The above figures are calculated with a 6 percent return on your investment to be on the right track to hit that milestone by 67.
How can you save that much money a month?
Here are three tips that I use to meet my savings target each month.
1. Saving vs Spending – Don’t spend more than what you earn. My advice is to stay on a monthly and even daily budget. Your savings must comprise at least 20% to 30% of your income.
2. Debit Card vs Credit Card – Don’t be careless with your spendings because of your credit cards. If you can’t control your spending, opt for a debit card instead.
3. Cautious vs Impulsive – Discounted items are great, but only purchase the items you need even if it is on a massive price cut. Consider the affordability, quality and the necessity of the item, especially if the item costs hundreds of dollars.