Look, I'm not shallow enough to say that it's one of my life goals to become a multi-millionaire who can live some lavish lifestyle full of insane cars, a bunch of mansions and travel the world riding first-class — assuming I don't have my own, private plane. While that all sounds tempting, I'm 32 years old and don't seem to have the fast track to making it happen... that I know of?
That's not to say I don't want to make it happen, because, let's face it, money makes the world go 'round, and if you're not keepin' up with the Benjamins, you may find yourself lying in a gutter somewhere after unfortunate decisions lead to even worse life situations.
Given the fact that most people can reach millionaire status at some point in their lives — assuming they're somewhat financially responsible — it's a goal that's very much in reach for a large number of the population. That said, it takes planning to make it happen... and we have some info that can help you get there by the age of 40, no joke!
Thanks to a trusty investment calculator from Dave Ramsey's website, you can now try to plan a strategy to hit that seven-digit mark, guys. But, be prepared, because there are some serious factors that will either make or break that plan.
First off, let's look at my current situation: A 32-year-old who has some money saved up, but not at all planning for millionaire status on the reg. So, using Ramsey's investment calculator, how much will/should I be putting away each month to hit that mark by the time I'm 40? Well, let's just say a hell of a lot!
The Results? With about $5,000 already saved up for retirement — I know, why don't I have more, right? — I anticipated receiving a 7 percent return on my investment over time, meaning I'd have to attribute $7,550/month to reach call myself a millionaire. Talk about some serious work to make that happen by age 40!
On the flipside, for those who are in their mid-20s and planning/hoping to reach the same status, your path isn't quite as hard — but it's not simple, either! Assuming most 25-year-olds don't have retirement money already saved, I put that at $0. Even when doing that — and keeping the same 7 percent return on investment — the monthly installment would be $3,100/month to become a millionaire by 40 years old.
Of course, being 25 and planning to hit $1,000,000 by 40 is a hell of a lot easier than a 32-year-old with the same goal, but, let's face it, how many mid-20s people have $3,100/month to invest each month? Not many.
That said, becoming a millionaire is very possible.
To see what you would need to invest per month to hit the million-dollar mark, head on over to Dave Ramsey's website to crunch the numbers.