Can I become a millionaire if I save over $10000 every year?
I make over $26200 a year and I pay rent about $800 a month. I always save up to 835$ a month. Is it possible to save up to 1 million dollar? I'm 21 years old with $40000 save up.
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answers:
Raymond say: If you CAN save 10,000 per year, yes.
Use Guaranteed Investment Certificates -- they give you a better percentage than a normal savings account AND they are (normally) 100% safe. Use compound interest and reinvest everything (capital and interest) at each cycle.

Investments (e.g. stocks) COULD give you more interest... but sometimes they can crash.

I made it with 5,000 a year over 45 years (back in the 1980s, you could get GICs above 10%); once I invested in stock (instead of GIC) and that 5000 is now worth 1.25. Mutual Funds (another foolish year) went from 5000 to 4000 after 15 years -- must have hit a bad cycle.
But the GICs did it.

BTW, I agree with others: being "just a millionaire" is no longer as great as it used to be.
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Ronald 7 say: Invest it and you will
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Puzzling say: Given your savings history just with your current salary, you should be well on the way to being a millionaire. As others have shown, if invested wisely (using a 10% historical average of the stock market) taking advantage of compounding, you could have a million by your early to mid-forties.

Age Balance
22 $54,471.35
23 $70,389.83
...
42 $966,202.45
43 $1,073,294.04

The problem is you apparently aren't investing for that type of return instead putting it in a savings account; that would need to change.

Hopefully your salary will grow as you progress in your career. Taxes and expenses will increase as well (married? kids? owning/maintaining a home?) but your annual savings should grow too. Take advantage of employer matching contributions to retirement (401k plan).

The next question is whether being a "millionaire" is enough (see second link). With inflation, you may want to aim higher than that. But again, given your savings mentality, I think you are on your way. Keep at it!
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Andrew say: If you lived 171 years old you might be a millionaire... Sorry
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Judy say: You're starting out well. As time goes by you'll probably make more and be able to save more. If you invest your money wisely, it's not impossible for it to grow to a million. Good luck.
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AlCapone say: It'll be impossible to become a millionaire by simply saving. However . . . . by intelligently investing that same money, the money can easily grow to a million dollars.
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i want chocolate say: 1mil - 40k = 960k
960k / 10k = 96 years
96yrs + 21yrs = 117yrs ( age you would be when you reached $1mil)

So to answer your question, no.
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Casey Y say: That would take 100 years without interest. Investing that $40k and continuing to add over time will eventually get you to a million...which will mean far less by that time btw.
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megalomaniac say: Statistically the most likely way to become a millionaire is to have a stable salary and save slowly and steadily over a long period of time (and of course it doesn't hurt to make wise investments). But it's really not that home-run swing that you are looking for, it's on base percentage that will bring the big payday in the long run (i.e. slow careful savings and low risk investments are much more likely to work than going for that one big deal, it takes patience but it works).
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John say: I'm a millionaire - my wife and I together. Don't mean squat.....
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A say: Maybe the best place to start is by networking. Sadly the quickest way for someone like me for ex. Who cannot afford Bitcoin is to work hard forever. But don't forget the saving account and loaning people and asking for payments. I don't know a lot. Though hope it will work out.
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Stefan say: yes keep dreaming
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Steve say: Youll have to do more than simply save. Learn how to invest in the stock market or someplace else that may interest you.
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Cecelia say: sure you can, you just need to seek out a reputable investment company or bank and tell them your plan and goals, then tell them you want to invest the money to generate monthly income, but save the monthly income it generates and at the end of the year you re-invest that income it created back into the thing. After the first ten years it will really start adding up. Just make a plan and stick to it, don't touch the money until you have it generating the monthly income you need to last for your "forever."
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say: It is not that easy, especially since inflation is always there (and not only made by the government or employees demanding higher rightful wages!)
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Morningfox say: You're making $2183 a month, pay 800 for rent, and save 835. That leaves 548 for food, clothing, insurance, transportation, movies, vacations and other stuff. That's possible, but not very pleasant for most people. If you work the standard 40 hours a week, you are at about $13 an hour. Not the official poverty level, but not much above it.

Mathematically, it will take you 1198 months = 99 years 10 months to save up a million dollars. Realistically, you desperately need to increase your pay grade.
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John P say: You need to save a bit more and spend it on some lessons in mathematics.
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Captain Matticus, LandPiratesInc say: Let's say that you completely invest that $40,000 into index funds and then put another $10,000 per year into index funds. The average S&P 500 index fund growth rate is 9.8%. However, this is the average. Some years, it grows dramatically and some years you'll lose money, but over the long run, you're looking at a 9.8% return per year

1,000,000 = 40,000 * (1 + 0.098)^(n + 1) + 10,000 * (1 + 0.098) + 10,000 * (1 + 0.098)^2 + ... + 10000 * (1 + 0.098)^n
10,000 * 100 = 40,000 * 1.098 * 1.098^n + 10000 * 1.098 * (1 + 1.098^1 + 1.098^2 + ... + 1.098^(n - 1))
100 = 4 * 1.098 * 1.098^n + 1.098 * (1 + 1.098 + 1.098^2 + 1.098^3 + ... + 1.098^(n - 1))
100 / 1.098 = 4 * 1.098^n + (1 + 1.098 + 1.098^2 + 1.098^3 + .... + 1.098^(n - 1))

S = 1 + 1.098 + 1.098^2 + ... + 1.098^(n - 1)
S * 1.098 = 1.098 + 1.098^2 + ... + 1.098^n
S * 1.098 - S = 1.098^n - 1
S * (1.098 - 1) = 1.098^(n) - 1
S * 0.098 = 1.098^(n) - 1
S = (1.098^(n) - 1) / 0.098

100 / 1.098 = 4 * 1.098^n + (1 + 1.098 + 1.098^2 + 1.098^3 + .... + 1.098^(n - 1))
100 / 1.098 = 4 * 1.098^n + (1.098^n - 1) / 0.098
100 = 4 * 1.098 * 1.098^(n) + 1.098 * (1.098^(n) - 1) / 0.098
100 = 4.392 * 1.098^(n) + (1098/98) * (1.098^(n) - 1)

1.098^n = k

100 = 4.392 * k + (1098/98) * (k - 1)
100 = 4.392 * k + (549/49) * (k - 1)
100 * 49 = 49 * 4.392 * k + 549 * k - 549
549 + 100 * 49 = 49 * 4.392 * k + 549 * k
549 + 4900 = (49 * 4.392 + 549) * k
5449 = 764.208 * k
5449 / 764.208 = k
5449000 / 764208 = 1.098^n
ln(5449000 / 764208) = n * ln(1.098)
n = ln(5449000 / 764208) / ln(1.098)
n = 21.011232992548140125907313232036...

So, if the market continued to perform at its historic trends, and you could manage to put 10K per year away (along with the 40K that you've already saved) into index funds, you could find yourself to be a millionaire by the age of 41, maybe 42.
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babyboomer1001 say: How are you possibly going to save $10000 a year when you are currently saving only $835, and when you only make $26200? Obviously, you have not worked the figures. I don't have to do that to see that you can't possibly do it.
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Don G say: Starting with $40,000, and saving $835 each month until age 65 (44 yrs), to reach $1.0 mil, you must earn 25% per year. Not very likely.
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say: If you save $10,000 per year for an average person's supposed working life, it will total about half a million dollars. But, if you INVEST all those chunks of $10,000s, with a sensible, positive interest rate, then yes, you could have that million dollars. Good luck!

PS - DON'T invest in a government plan!
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Kevin7 say: Yes it could be done
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oneofmagi@rocketmail.com say: you need something business from the money.
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Idealist say: That's a pretty good start. But you should do something else with your money because you won't save that much money if you want to become a millionaire. You should start looking into things like investing or starting a small business by selling something popular. Or go to school and get a higher education/degree for a better job, that can help you more by saving much more money since decent jobs are high-paying jobs.
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wobafetty say: 100 years of life with...
You don't know what you're going to come across or what changes will occur over those 100 years IF you survived those 100 years. You also likely wouldn't be working 100 years.. Your salary could very well increase as well in which case you might reach a 1mil much sooner than you expect. It might decrease however and take you more than 100 years. c;
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Erv say: If you can't figure out the math and investment potentials yourself, the likely answer is no
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Buy the Numbers say: I think it is very likely that you will.

I'd bet almost no one that said "No" even has $40k saved up. I gurantee none of them had $40k at your age unless they inhertied it.

Now these simpletons **assumed** that you will be making $26k your whole life. Based on your savings, I would guess you work hard and you'll move up in responsibility and income. Bad assumptions always leads to faulty analyses.

You didn't mention your job or education level. If college isn't for you, it's not as big a deal as people think, especially with the astronomical debt that goes with it. However, in that case you shoudl learn a trade (plumber, electrician, etc.) and work your way towards eventually starting your own business. See if you can find any small business owners (even shop keepers, etc.) and talk to them.

Trust me, you are miles ahead of most people. Do some web searching on "average savings" and you'll see what I mean.
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nt say: You can do ok. maybe not a millionaire.

Google "drive free, retire rich".

$10K NOW IS good but it needs to increase every year and you need to have good fortune in stocks.
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Erik say: Sure, if you live to be 100.
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say: In 100 years at $10,000 per year, ignoring growth, yes.

Don't you wish you had paid more attention in math class?
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AdamTheAtheist say: Only if you live to 100 and started saving the year you were born.
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STEPHEN say: Someone making 26k a year is never going to be a millionaire.
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aaron say: You'll be a brazillionaire
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Bryce say: The historical compounded average annual return of the US stock market since 1950 is about 10%. If you invest in a mutual fund that tracks the S&P 500 stocks and it returns the historical average, it will take
1,000,000= 40,000(1.10)^t + 10,000[1 - 1.10^t] / -0.10
t≈ 21.63 years.
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pearlmar say: No way. In 30 years you still won't have half a million.
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say: Maybe. But that means no wives, no girlfriends, no kids, no buying anything.
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