A million dollars in the bank. It seems to be the magic retirement figure that most people strive to reach. How do you get to a million dollars? Is it just saving money? Is there some magic investing formula? Are you just hoping to get lucky and win the lottery?
While there are ways to “beat” the stock market and a tiny chance you could win the lottery, focusing on practical methods is the best approach to reaching that magic million dollar mark. Reaching your goal starts with saving some of your hard-earned money. Whether it comes from making more money or cutting back on expenses, it has to start with saving.
Setting aside a portion of every paycheck is the easiest way to start. Make it even easier by setting up an automatic withdrawal. Most companies offer direct deposit options that will let you put either a set dollar amount or a percentage of your paycheck directly into an investment account. Setting an amount or percentage up for investments also allows you to invest the money without ever having to save it manually.
How much do you have to save? That depends on your age and the current amount you have saved. If you are older with very little saved, you’ll have to put away a good chunk every paycheck to hit that million dollar mark. If you’re still young and have been putting money away, you’re already on the right track. You can coast through as long as you are consistent with your investments.
Looking for a number you can start saving today according to your age and amount saved? Look no further than this infographic. It takes the guesswork out of saving and gives you a real, applicable number you can start putting aside today.