Reaching seven-figure status may be more attainable than you think. That is, if you start saving and investing early on.
To illustrate just how possible it could be, personal finance site NerdWallet breaks down exactly how much money you need to set aside each day in order to have $1 million saved by the time you're 67. It assumes you start with zero dollars and it also assumes a six percent average annual investment return.
NerdWallet lists the savings amount needed for the starting ages of 23, 30, 35 and 40:
The sooner you start putting your money to work, the less you'll have to save each day, thanks to compound interest. As "Mad Money" host Jim Cramer explains: "The magic of compounding works best the younger you are, because that means you have more time for your money to grow."
To give you an idea of just how powerful it can be to start investing early on, check out this graph from NerdWallet, which shows how different the path to $1 million looks depending on what age you get started:
Ready to put your money to work? The simplest starting point is to invest in your employer's 401(k) plan, a tax-advantaged retirement savings account. Next, consider alternate retirement savings accounts, such as a Roth IRA, traditional IRA and/or a health savings account.