E
ver wanted to be a millionaire? While it may seem like there are a million dollars between where you are now and your goal, the good news is that you don’t need to save a million dollars to get there. In fact, all you need is just $2,500 per month from age 25 to 67. That’s it! The earlier you start putting away that money, the easier it will be for you to reach your goal and live your millionaire lifestyle. Here are some tips on how to start saving now and live your dreams sooner.
The Amount of Money You Need
To figure out how much you need to save, take the amount of money you want to live on each month from age 25-67 and multiply it by 25. That’s the monthly amount you need to put away now if you want to live your millionaire lifestyle in your later years. If you want $50,000 per month when you retire at 67, then that means that if you start saving $2,500 per month today, by the time retirement rolls around, you’ll have saved up a whopping $625,000!
The Difference Between Saving Earlier
If you’re a late starter, you still have time to catch up. If you start saving $2,500 per month at age 30 and continue to put away that amount until age 67, you’ll have saved up $1.3 million by the time you retire. That may seem like a lot of money, but it’s still not enough for a millionaire lifestyle! If you had started saving at age 25, however, your savings would be $4.4 million! That’s nearly twice as much as if you had started saving at age 30 and would be enough to live off of every month after retirement!
Start Saving Now
It may not be easy to get started saving, but the sooner you start, the easier it will be. Take a look at your paycheck and see where you can cut down on expenses. If you’re like most people, there are plenty of areas where you can cut back! Then take that extra money and put it in your savings account. You should also make sure you’re taking full advantage of tax-deductible retirement accounts such as 401(k)s and IRAs. These accounts allow your money to grow on a tax-deferred basis, which means that any interest earned is not taxed until the money is withdrawn from the account. This means that more of your money can go toward growth rather than taxes.
Invest Wisely
Just because you’re saving now doesn’t mean that you can stop right away. The earlier you start saving, the more your money will grow over time. If you want to be able to retire a millionaire, you need to be investing as soon as possible! There are two ways to invest: through stocks and bonds or by buying real estate. Both of these can be risky and should only be done with the money that you can afford to lose. You should also have an investment plan in place before investing so that you can avoid risky investments (like those in dot-com companies) and stick to safer investments (like blue-chip stocks). If your plan includes a stock portfolio, make sure you’re diversifying your investments by investing in a variety of different companies in different industries. For example, you might invest in a health care company, an oil and gas company, a technology company, and an entertainment company. This will help to protect you from risk if one industry is doing poorly.
Investing in real estate is another way to build wealth. If you have money saved up and want to buy property for investment purposes, make sure that the property is a good investment before putting your money into it. The best way to do this is to consult an expert about the value of the property and whether or not it will be profitable for you to purchase it. You should also be prepared for possible risks such as management expenses and vacancy rates.
If you are considering investing in real estate, you should be aware of the laws regarding Real Estate Investment Trusts (REITs). These trusts can help you diversify your investments and can potentially lower your tax liability. If you are interested in investing in REITs, talk to a financial advisor about which ones might be good for you.
Staying organized will help keep your finances on track so that you know where your money is going and how much money is coming in. Use a spreadsheet program or an online budgeting tool to keep track of all of your expenses and income. Then use this information to make sure that your spending is within reason and that your income is meeting your needs.
Try using a credit card that gives cashback rewards. There are many different types of cards, each with its own benefits. For example, some cards offer cashback rewards on purchases at certain stores or on purchases made when traveling abroad. There are also cards that give cash back for paying your bills on time and for using your card at gas stations or grocery stores.
A great way to help save money is to invest in a gym membership and use it regularly. Getting exercise every day will help you save money on medical expenses, and as an added bonus, you will be in better shape. This is a great way to keep your health insurance premiums low and your body healthy at the same time.
If you are looking to save some cash, consider cutting out cable services. This expense can be significant over time, so by eliminating it you can potentially save hundreds of dollars each month. You can still watch television through free over-the-air channels or by purchasing a digital converter box for your TV that allows you to receive free channels with an antenna.
How to Save $2,500 per month on average
When you start thinking about saving $2,500 per month, it may seem like an impossible number. Here are some quick tips to help you get started.
1. Save on Your Cell Phone Bill
One of the easiest ways to start saving is by reducing your cell phone bill. This is something that’s easy to do and can save you a lot of money in the long run. For example, if you have a family plan with four lines and unlimited data for $100 per month, this could be costing you up to $600 per year in cell phone bills! How much more money could you have in your pocket? In fact, if you switch from unlimited data to 2GB of 4G LTE data for $55 per month, you can save over $500 per year.
2. Stop Paying for Cable TV
Another way to save money is by doing away with cable TV. Why pay for cable when you can get most of the same shows from the internet? It’s true that cable has more channels, but if you’re only watching 20-30 of them, you don’t need to pay for all of them! Most people are paying around $100 per month for cable TV, but if they switched to Netflix and Hulu Plus, they could be saving up to $1,200 per year! That’s a lot of money – and it’s not even factoring in how much you’re paying for cable TV each month.
3. Shop Around for a Better Rate on Car Insurance
One of the biggest savings you can make is by shopping around for a better car insurance rate. Even if you’re only paying $100 per month, having the same insurance provider for years could mean that you’re paying hundreds more than necessary! I personally saved about $500 per year when I switched to Geico, and that was just by switching insurance providers – not even by shopping around for discounts! Obviously, the more discounts and deals you can find, the more money you can save. But even just changing your insurance provider can save hundreds of dollars per year – so don’t ignore this one!
4. Buy Generic Groceries to Save Money on Food
Another way to save money is by buying generic groceries. The truth is that most generic groceries are made by the same company as their brand name counterparts – they just have a different label and are usually cheaper! The only time you should buy the brand name is if you prefer it or if it’s on sale. For example, I would only buy Kraft Macaroni & Cheese because I like the taste better than store brands, but store brands are a lot cheaper! So make sure you’re buying generic whenever possible – even if it means switching to a different food altogether. You can save hundreds of dollars per year by going generic!
5. Use Coupons for Groceries to Save Money on Food
Another way to save money on groceries is by using coupons. You can find coupons in the newspaper or online – just search for “coupons” and your grocery store name. Some stores even have apps that let you scan barcodes and find the best deals! But don’t just use any coupon: make sure it’s a coupon for an item you actually buy! For example, if you only buy one box of cereal each month, that cereal brand probably won’t have a coupon – but another brand might! So take the time to look through all of your coupons before you go shopping
6. Get a Side Hustle to Make Extra Money
Of course, if you want to save money on groceries or anything else, the easiest way is to just earn more money! That’s where getting a side hustle comes in handy. When you have a side hustle, it gives you the freedom to set your own schedule and make your own hours (or even get a second job!). It also gives you the freedom to choose what you want to do. You can start a side hustle by selling items on eBay, joining a focus group, or taking surveys online. The possibilities are endless!
Final Thoughts on How Much Do I Need to Save a Month to be a Millionaire?
You want to be a millionaire, but you can’t seem to save any money? It may sound hard, but it’s not impossible. In order to be a millionaire, you have to have a monthly income of about $3,000 or more. You also need to have your expenses stay under $3,000.
Do you want to learn more about building wealth? Check out these Best Books on Wealth Building.
Meet Maurice, a staff editor at Bigger Investing. He’s an accomplished entrepreneur who owns multiple successful websites and a thriving merch shop. When he’s not busy with work, Maurice indulges in his passion for kayaking, climbing, and his family. As a savvy investor, Maurice loves putting his money to work and seeking out new opportunities. With his expertise and passion for finance, he’s dedicated to helping readers achieve their financial goals through Bigger Investing.
