7 Moves to Ensure You’re a Retirement Multimillionaire | Business | #retirement | #elderly | #seniors
If you give yourself a short time to save for retirement, you’d have to invest tens of thousands of dollars every month to save even $1 million.
Say you start saving at 55 and want to become a millionaire by 65. With just a decade to invest, you’d have to save more than $72,000 per year just to end up with $1 million (assuming a 7% average annual rate of return on investments). Even this would probably be out of reach, never mind ending up with multiple millions. By contrast, someone who started saving at 25 would have to make an annual investment of around $10,000 to end up with $2 million.
Saving early is an effective way to becoming a multimillionaire because you can reinvest your returns and grow your account balance effortlessly.
4. Work on increasing your income
The more money you make, the easier it is to save the kind of money you need to become a multimillionaire. You can only cut spending so much before you can’t afford the necessities. But the only limit on how much you can earn is your time and talent.
You can increase your income by negotiating for raises, pursuing new job opportunities, working side gigs, or developing new job skills. As your salary goes up, invest more for your future.