25 Feb Take The Stairs
“Do the difficult things while they are easy and do the great things while they are small.” – Lao Tzu
If you’ve ever talked with me about money, you’ve likely heard me say “It’s easy to become a millionaire.”.
If you’ve read a few of our blog articles, you’ve seen me write the same thing; “It’s easy to become a millionaire.”. In fact, we even published an article with that exact title. We’ve published multiple articles showing how anyone can easily become a millionaire.
We began 2019 by recommending that everyone contribute a minimum of 10% of their income to a retirement account; more if possible. We then spent the next 6 weeks showing everyone how they can find the money necessary to pay for their 10% contribution.
Today we want to bring everything together and itemize what we’ve been showing you.
01/14/2019; we showed you how to save $327 or more per year.
- Automatic Bill Payment
01/21/2019; we showed you how to save $2,400 or more per year.
01/28/2019; we showed you how to save $625 or more per year.
02/11/2019; we showed you how to save $2,400 or more per year.
02/18/2019; we showed you how to save $678 or more per year.
That’s Total Savings of $6,430 or more per year!
The average American household earns $56,516/year, so $6,430 is the equivalent of:
- 473 hours of work; or
- 12 weeks of work; or
- 3 months of work; or
- ¼ of your entire work year!
So why wouldn’t you take a little time to save $6,430 in expenses? If you wouldn’t, then you will never be a millionaire. If you are a millionaire & wouldn’t do this, you probably won’t be a millionaire much longer.
We recommended saving a minimum of 10% of household income in a retirement account. Based on an average household income of $56,516, you’d be saving at least $5,652/year. If you’ve saved $6,430 on household necessary expenses, you’ve fully funded your retirement saving. It really is that easy.
Now let’s take a look at what can happen when you save 10% of your income in a retirement account each year.
|BALANCE WITHOUT||BALANCE WITH 3%|
|YEAR||EMPLOYER MATCHING||EMPLOYER MATCHING|
|10||$ 122,288||$ 158,974|
|20||$ 536,092||$ 696,919|
|30||$ 1,850,549||$ 2,405,713|
|40||$ 5,922,368||$ 7,699,079|
|50||$ 18,402,507||$ 23,923,259|
And that’s how easy it is to become a millionaire.
The reason most people will never become wealthy is because they do not take the time to learn how to do so. You will. Afterall, you’re taking the time to read this article. Among those that do learn, most will never take the steps necessary to achieve their goal of becoming wealthy. Among those that do, few will stick with it. The question is; “Will you do what needs to be done to become wealthy?”.
It’s easy to become a millionaire. Anyone can do it. There is nothing difficult about it. You just have to do it.
Sapiat Asset Management is an independent registered investment advisor, specializing in financial planning based, asset management for Gen X Individuals & Families, their Businesses, & the Trusts that benefit them.
*Assumptions include a starting income of $56,516 per year, saving 10% of annual income, an annual increase in wages of 3%, and an average annual return of 11.76%. The Standard & Poors 500 has averaged 11.76%/year since inception.