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Can I become a millionaire if I save over $10000 every year?

I make over $26200 a year and I pay rent about $800 a month. I always save up to 835$ a month. Is it possible to save up to 1 million dollar? I'm 21 years old with $40000 save up.
  • Best Answer
    Given your savings history just with your current salary, you should be well on the way to being a millionaire. As others have shown, if invested wisely (using a 10% historical average of the stock market) taking advantage of compounding, you could have a million by your early to mid-forties.

    Age Balance
    22 $54,471.35
    23 $70,389.83
    42 $966,202.45
    43 $1,073,294.04

    The problem is you apparently aren't investing for that type of return instead putting it in a savings account; that would need to change.

    Hopefully your salary will grow as you progress in your career. Taxes and expenses will increase as well (married? kids? owning/maintaining a home?) but your annual savings should grow too. Take advantage of employer matching contributions to retirement (401k plan).

    The next question is whether being a "millionaire" is enough (see second link). With inflation, you may want to aim higher than that. But again, given your savings mentality, I think you are on your way. Keep at it!
    Puzzling · 1 0
  • Other Answer
  • Only if you invest, and succeed, at a business
    Jim Moor · 0 0
  • Invest it and you will
    Ronald 7 · 2 5
  • You're starting out well. As time goes by you'll probably make more and be able to save more. If you invest your money wisely, it's not impossible for it to grow to a million. Good luck.
    Judy · 1 1
  • That would take 100 years without interest. Investing that $40k and continuing to add over time will eventually get you to a million...which will mean far less by that time btw.
    Casey Y · 3 0

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