This is how much you need to save every day to become a millionaire by the time you're 65
Topics: Money
Aisha Nozari
Featured Image Credit: Tetra Images, LLC / Lightboxx / Alamy
Topics: Money
Under the age of 25? You only need to save around £3 a day and you’ll be a millionaire by the time you’re 65.
Well, at least according to financial advisor David Bach you will.
Bach is the author of Smart Couples Finish Rich - a book about money management. He also came up with a chart demonstrating how much people of different ages will need to save in order to be a millionaire by 65.
According to Insider, Bach pointed out that starting to save as early as possible is key.
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He writes in his book: “Becoming rich is nothing more than a matter of committing and sticking to a systematic savings and investment plan.
"You don't need to have money to make money. You just need to make the right decisions — and act on them."
The outlet points out that Bach’s chart (which is calculated in dollars) doesn’t take taxes into account and his estimations assume a 12% annual return.
Plus, it’s more than a few years old, so doesn’t take into consideration the cost of living crisis that’s currently bleeding us all dry.
That said, it’s still a nifty saving template for anyone partial to ten Greggs visits a week - especially seeing as Bach advises against buying small daily treats like coffee and instead saving the money.
According to Bach’s calculations, anyone who is aged 20 should try and save $2 a day (which totals $61 a year and $720 annually) if they want to be a millionaire by 65.
If you’re 25, that jumps to $3.57 a day ($109 per month and $1,304 per year) and for all you 30 year olds, that’s $6.35, $193 and $2,317 per day, month and year respectively.
35 year olds will need to save $11.35 a day, $345 a month and $4,144 a year while 40 year olds are advised to save $20.55 daily, $625 weekly and $7,500 annually.
45? Better make that $38.02 a day, $1m157 a month and $13,879 a year. And if you’re 50, you’re cutting it pretty fine, so you’ll need to make sure you put aside $73.49 a day, $2,235 a month and $26,824 a year.
There you have it. So, put down the steak bake, delete the delivery apps and consider cutting your pub visits down from once a day to once a week.