Tuesday, May 13, 2014

Compound Interest: How long will it take to save 1 Million Dollars (Pt1)?

Assuming you make 5% a year after inflation and taxes, here's how long it'll take you to make 1 million (in today's dollars):

Additional Savings Per Year: $0.00 $5,000.00 $10,000.00 $15,000.00 $20,000.00
Starting Net Worth




$10,000.00 94 47 36 29 25
$20,000.00 80 45 35 29 25
$30,000.00 72 44 34 28 24
$40,000.00 66 42 33 27 24
$50,000.00 61 41 32 27 23
$60,000.00 58 40 31 26 23
$70,000.00 55 38 31 26 22
$80,000.00 52 37 30 25 22
$90,000.00 49 36 29 25 22
$100,000.00 47 35 28 24 21

The takeaway is to start early and save as much as possible.  Your starting net worth doesn't matter as much as how long and how much you choose to save.  More on this later...

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