Becoming a millionaire isn’t the challenge it once was. In fact, you may already be on track to reach seven figures by age 67.
But what if you want to speed up the process and reach that milestone in the next 10 years? It could be possible, if you’re willing to work for it — and put away each month more than 81 percent of Americans have in savings, total.
Using CNN Money’s millionaire calculator, we found how much you’d have to save each month to become a millionaire by 2027.
Assuming that you’re starting with no savings and earning a six percent annual rate of return, you’d have to invest $6,000 a month to become a millionaire by July 2027.
If you already have $10,000 saved up, it won’t make much difference. You’ll still need to put away $6,000 a month, but you’ll reach millionaire status by May of that year.
Even a full $50,000 in savings doesn’t change things too much: You’d still have to put away $5,500 per month until June 2027 to become a millionaire.
These differences speak to the power of compound interest, in which any interest earned accrues interest on itself, and a little money invested now can amount to a lot of money later. Letting your money compound for 10 years won’t create the same returns as letting it sit for 30 or 40.
Of course, $6,000 a month is an ambitious goal. Even $6,000 a year is more than most Americans can manage. But getting into the habit of saving any amount will be great for you in the long run, and if this inspires you to get started, the simplest way is to invest in your employer’s 401(k) plan, a tax-advantaged retirement savings account. Next, consider alternate retirement savings accounts, such as a Roth IRA, traditional IRA and/or a health savings account.