Becoming a millionaire has long been part of the American dream, but saving $1 million is not just an idle fantasy for most Americans. Saving at least $1 million is a dream many feel must come true if they’re going to have a comfortable retirement.
I have repeatedly mentioned that almost anyone can become a millionaire. If you have a lot of time — think four or five decades — it isn’t difficult at all; simply invest a few thousand dollars every year and watch your more compound and grow. If you only have 20 or 30 years in your time horizon, it will require much more cash.
A 20 year old could be a millionaire well before their 65th birthday simply by investing about $2,500 a year — that’s just $200 a month.
However, a 45-year old would have to set aside over $20,000 a year — that’s about $1,700 a month.