im 19 years and i want to know how to save a million dollars by the time im 40 years old?

Answer 1

1. Buy a house as quickly as you can. Rent the extra rooms to make the payment, and you live there for free.
2. Drive reliable old cars. Do not make car payments.
3. Pay cash. Save up for the more expensive things you want.
4. Keep a reserve in the bank for the unexpected expenses we all have.
5. Marry someone smart that has good job prospects.
6. Max out any retirement benefits, 401K Roth IRA
7. Enjoy a life free of money stress.

I'm not quite to a million yet, but I'm pretty close.

Answer 2

It is good that you are setting a real, measurable goal!

There are many ways to get there, and here is one example. If you can save and invest exactly US$14,005.07 each year for the next 21 years and get a return rate of 10%, you will have one million when you are forty. That is $1,167.00 per month. If you can sock it away, you will have the million when you turn forty.

You can plug in different numbers to the calculator at the URL below. It shows you estimated future spending power based on what you are currently saving.

Good luck!

Answer 3

Not realistic for most people. You can however do yourself a huge favor by getting into the habit of saving and investing now. You can take advantage of the asset of time. Your small investments can grow to huge amounts if you leave them alone. A mil in 21 years? Very unlikely. But a few hunded grand is doable and not bad at all. 31years sure. And don't just think about it, actually do it!

Answer 4

1) Create a budget worksheet to see where you can lower your expenses.
2) When you get paid at your job, save 10% of it into a retirement account.
3) If you are a type of person who loves to spend, then you need to quit it and take serious financial responsibilities.
4) The only way to accumulate 1 million dollars in 21 years is to invest your money. If your portfolio earns an average rate of return of 10%, you would need to save at least $1200/month. If it earns 11%, you would need to save at least $1100/month. If it earns 12%, you would need to save at least $1000/month. They are many mutual funds that has perform around those rates in the past 25 years and some in the past 10 years.

Before investing into a mutual fund, you should check the fund's prospectus to see its past performance on the returns before taxes and the returns after taxes. For example, Legg Mason Partners Aggressive Growth Fund Class A shares has an average rate of return of 13.53% in the past 10 years in a tax-deferred accounts. If this was in a non tax-deferred account, meaning you pay income taxes on dividends and capital gains, the return would be 13.28%. You also want to check its annual expenses, which also affects the rate of return. In this example, Class A shares of this mutual fund has annual expenses of 1.11%. There are many other details in the prospectus that you can read such as who manages the mutual fund and companies that the fund invests in.

Anyway, I don't know that many 19 year olds who can save $1000 to $1200 a month and you can't open any IRAs to put that much money in (because total annual contributions would be $12,000 to $14,400 and the IRS only allows $4000 annual contributions).

If you plan to accumulate a million when your 55 years old, then you would need to save less money. You can even open an IRA account if you save less than $333/month. If you save $200/month for the next 36 years and your portfolio perform 12%, you may possibly have $1,466,370. But to be conservative, if your portfolio perform around 10%, you would need to save $300/month to have a million dollars.

Anyway, none of the figures I tell you is guaranteed. Its just hypothetical because no one knows how your investments will perform in the future. My main point is that if you want to build wealth, you have take on risks by investing into the stock market. It may be possible for you to save $1000-$1300 a month if you get a good paying job, but that would mean you need to make some sacrifices such as less fun time so that you can be able to pay your bills.

Answer 5

i do not think of their is a few thing incorrect with it. you'll discover out once you date out of your own age, by technique of a decade or 2. there'll be important adjustments in the position you're both in life, yet each little thing will be labored out if ya both truly want it to artwork. are you waiting to placed up consisting of his needy youthful little ones and an ex-spouse which will be an entire b*tp.c.h. it really is the age decision your attracted to. you'll consistently take a backseat to his bags. Dates will be damaged because between the little ones is ill. Your needs will be brushed aside because his youthful little ones come first. in case you do not recommendations all this, than you are able to play with the grown-ups. in my opinion, i does no longer date all of us more effective than 5 years out of my age.

Answer 6

Don't spend any money you don't have to and save all the spare in an interest bearing account.

Answer 7

Go here and download this report
it teaches you the magic of compounding your return.

Answer 8

Never spend, only save.

Answer 9

Take some courses on real estate, invest in property, and learn how to "flip" houses.

Answer 10

long-term invest in stocks