LifestyleTurn $100 weekly into a million by retirement

Turn $100 weekly into a million by retirement

When to start investing, how much to set aside, how quickly can one become a millionaire? Experts have calculated this.

Images source: © Public domain

9:13 PM EDT, April 18, 2024

Many of us dream of becoming millionaires, and investment industry experts believe this goal is attainable through relatively straightforward steps. They argue that saving a mere $100 a week could be the key. But when is the ideal time to start?

Experts featured in Bloomberg's reports consider achieving a net worth of a million dollars by retirement feasible. They highlight that the secret lies in beginning your investment journey at the right moment, consistently setting aside a specific amount of money, and demonstrating dedication to this endeavor.

Importance of early savings

For those residing in the United States, advice from the USA site may prove particularly insightful and serve as a source of motivation. What is the initial step recommended by financiers? Starting to save before the age of 25 is ideal. According to the Milken Institute, this approach can accumulate approximately $1.1 million in sufficient retirement funds.

How much should one save? Experts estimate that investing $100 a week with an annual return of 7 percent can yield significant savings. Given the right circumstances, this strategy can secure millionaire status by retirement at age 65.

Bloomberg points out that adhering to the guidance of professionals may present a challenge for younger individuals, especially for students grappling with federal educational loans. As a result, allocating $400 a month could seem daunting.

"Allocate 15 percent of your income to investments"

Fidelity, a financial services firm, offers a different perspective. They suggest that by investing 15 per cent of one’s income starting at 25, it's possible to retire by 67. The catch? You need to put half of your investment into stocks.

The firm underscores the significance of beginning your investment journey as soon as possible. By saving $100 a week from the age of 35, it's feasible to amass up to $300,000 by 65. Yet, reaching a million-dollar milestone requires a longer commitment.

And what about individuals in Poland eager to delve into the stock market? Is it a worthwhile gamble? Direct Money's guide outlines opportunities for people at varied life stages. Given persistent high inflation, many seek efficient strategies to safeguard their savings against the diminishing value of money held in low-interest bank accounts. The service's experts present investing in the stock market as a viable alternative.