How to become a millionaire by the age of 65

David Bach creates a chart which specifies how much money one needs to save to become a millionaire


Web Desk July 31, 2015
PHOTO: AFP

If you want to become a millionaire then you need to start saving and investing from an early age, financial adviser David Bach writes in his book Smart Couples Finish Rich.

"Becoming rich is nothing more than a matter of committing and sticking to a systematic savings and investment plan," he added in his book.

Read: The world's 10 wealthiest couples

According to Bach, you can become rich even if you don’t have a lot of money. "You don't need to have money to make money. You just need to make the right decisions — and act on them."

In order to have $1 million by the age of 65, Bach has created a simple chart which specifies how much money one needs to save each day, month or year.

The chart assumes you're starting with no investment and it also assumes a 12% annual return.

For the sake of simplicity, the chart below does not take into account the impact of taxes, it still gives a good idea of how saving a few dollars each day can help you become rich, especially if you start at an early age.

Source: David Bach/ Business Insider

Further, Ramit Sethi states in his New York Times best-seller, I Will Teach You To Be Rich, “The simplest starting point is to invest in your employer's 401(k) plan.”

He further adds, “Consider contributing money toward a Roth IRA or traditional IRA, individual retirement accounts with different contribution limits and tax structures.”

Read: Here are the world's most expensive cities to live in

This article originally appeared on The Business Insider

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