The sooner you start putting your money to work, the easier it is to reach 7 figures.
Ideally, you’ll want to start saving and investing in your 20s in order to reap the full benefits of compound interest. That being said, even if you don’t get started until your 30s, it’s still more than possible to build a million-dollar portfolio.
To illustrate how attainable it is, personal finance site NerdWallet created a chart showing how much money you need to set aside each day, month and year in order to have $1 million saved by the time you’re 67. It assumes you start with zero dollars at age 30 and also assumes various average annual investment returns.
See the exact numbers below:
A four percent annual return:
$33Â per day
$982Â per month
$11,769Â per year
A six percent annual return:
$21Â per day
$610Â per month
$7,413Â per year
An eight percent annual return:
$12Â per day
$366Â per month
$4,552Â per year
A 10 percent annual return:
$7Â per day
$213Â per month
$2,755Â per year
Of course, depending on when you want to retire and what you want your lifestyle to look like in retirement, you may need more or less than $1 million. To help you figure out how much money you need to fund your golden years, check out NerdWallet’s retirement calculator.
Next, put your money to work. The simplest starting point is to invest in your employer’s retirement plan, a tax-advantaged retirement savings account. Next, consider alternate retirement savings accounts, such as a health savings account.