Hoard those pennies, kids.
Writing for Business Insider, author David Bach (Smart Couples Finish Rich) recently calculated how much you’d need to invest each day to become a millionaire by the age of 65. Assuming an average 12% annual return on an IRA or 401K and not taking taxes into account — big assumptions there — you get the following:
If you start at 55, you’d need to invest $156.12 each day, or about $57,000 a year. If you start just five years earlier, at 50, you can cut those amounts in half. At 40? You’d just need to start with $20 and some change per day (or, as your hacky editor would say, “About one coffee at Starbucks, amiright?”)
Oh, and millennials? $3.57 per day for 40 years.
Start saving.
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