Become a Millionaire in 30 Years with your Current Salary

Great article! Gave it a Stumble with review.

@ Ron: Thanks! We appreciate it!

Good article. Even though it’s hard for some people to put away $442/month with rent the way it is, and some paying student loans. I’m sure many can do it with some self discipline.

I think people would treat their income very differently if they imagined it as a set total, like you describe. If I have a million to live on, I’m going to be way more hesitant to blow a dollar of it, knowing that a million is all I have.

Nothing wrong with the process described and it will work. The problem? In 30 years, a million dollars won’t be worth nearly as much as it is today so you’ll likely need more than a million to retire comfortably. Inflation sucks, doesn’t it?

@ ETF Guy: You have an excellent point, although with the kind of saving we have described, there is still quite a bit of money to be had whether it is in today’s dollar terms or tomorrow’s.

As you set aside a budget for saving aggressively and inflation starts to come up strong, there is a pretty good chance that you will be able to keep up with inflation if you play your cards right. Most people will get raises to keep up with it and compound interest should kick in before inflation runs someone under.

And besides, it’s better than nothing right?

this is whats wrong with traditional planning!!! math is not money and money is not math, plus considering the volatility of the market today, in the past and more than likely in the future… ei.. if you have 10000 and you invest, year one you gain 10% year two you lose 10%.. so on and so forth.. you dont break even, you lose..check the last 60 yrs.. i invest myself however this is very misinforming!! i know for a fact that you can get to the same or better by simply using your money efficiently!! NO IM NOT TALKING ABOUT CLIPPING COUPONS! economic use of your dollar not only combats the effects of inflation and taxes but exceeds most expectation..

all i will say is this article is entirely misleading and wrong. Anyone who knows finance knows this. Don’t read this article as fact and know first and foremost, the S&P has an annualized return of 3.5% over the past ten years. Over the past 5 even less, and god forbid you look less than that, and to top it all off you cant invest in the index, only in the stocks in the index, leaving it all to very uneducated chance.

@ Social_Kalevra - Overtime - especially over 60 years, you will make money investing in an index like the S&P 500.

@Wrong - Over the past 30 years (the point of the article) the S&P has returned around 10%. The point is time. Investing in an index is not about 5 years to 10 year returns, however, long consistent purchasing with time to ride the ups and downs of the market. In 30 years or more, you will return more than 3.5% and in a safe way considering diversification.

Fantastic post!

And I love the suggestion on “Red Box” - MUCH better than Blockbuster!

Thanks for the suggestions.

agreed but you have to take into account the time of investment… if you invest the total amount at the beginning of the 30 years and then periodically over that time without diversification in markets then you will catch some of your investments in down swings. My main point is that the SP is not adequate allocation of investments. Sure 10 years is not what you look at but you cant say anything close to 10 percent taking into account poor investment time, in one index that is.

Very nice way of educated those who are scared that they could never get to a million dollars. I will say that if you are going to save $442 a month on a $35k/year salary, you better be married to a spouse with a second income. Or you could just live in a very cheap city. But it is possible as you state if you live a frugal lifestyle. Let’s not forget about the fact that this person might have a 401(k) where they work. I have detailed what participating in that will do, and that will really open your eyes when you add in the employer’s contribution. Have a look and be prepared to gasp:

http://www.thegearedinvestor.com/max_out_your_401k.shtml

Cheers, nice site, first time here.

ONLY 442 a month? Wow….that’s more than my car note. I wish I had that kind of extra income, but I do good to make ends meet and I make 32K a year.

Well if that’s about how much your car payment is then that’s great news!! Once your car payment is finished and your car is paid for, you can use that extra money to contribute! You will never miss it if you have been paying off your car for a while. You will feel like an utter genius when you have such a great financial foundation in the years to come and regret it if you don’t do it early. Hope we can help you make ends meet!

to wrong index investment IS available and is way
cheaper then you expect, and a great way to the
inexperienced investor to make a great investment
(you WILL beat around 70% of the PROFESSIONAL
investor this way…).

@ Conny: Agreed, very few mutual fund managers can consistently beat an index, so why try?

Finding ways to save money is also a great way to help you get out of debt. There are many ways to save money when making necessary purchases and keeping money in your pocket so you can put it towards your debt. To find out more you can reach me below.

Bob Stellato
http://www.whynotnegotiate.com
info@whynotnegotiate.com

[...] have talked about this before numerous times and it seems as though Investopedia has made their own list, very similarly to [...]

[...] have talked about this before numerous times and it seems as though Investopedia has made their own list, very similarly to [...]