How to Estimate Becoming a Millionaire with a Savings Calculator
- 1). Plan for becoming a millionaire
Determine how much money you have now available for investment or savings. Also, decide how much monthly contribution you can add to the initial investment. For example, you may place $20,000 in an investment vehicle, like mutual funds, IRA, Money Markets upfront and add $250.00 every month until you become a millionaire. - 2). Estimate the return on your investment above. Let's use a conservative 6% annual return for example. This rate is comparable to the S&P average return. Also, consider inflation which is on average 3% according to government data.
- 3). Find a millionaire savings calculator online to make your plans. There are many free savings calculator provided by investment companies, banks and insurance companies. (See Resources below this article for a calculator link).
- 4
Enter the above information in the millionaire savings calculator using $1,000,000 as the final target amount. The results will show that it will take 46 years for your investment to make you a millionaire. Note that due to price inflation the million dollars will be worth much less in today's money. In other words the purchasing power of this money will be reduced. - 5). Be ready to adjust your plans
Make adjustments to the millionaire savings calculator if you think 46 years is just too long. You can place your money into more aggressive investments to increase the rate of return. You can also start the investment with more money upfront and make larger monthly deposits.
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