How soon could you become a millionaire?
The sooner you start saving and investing, the easier that goal will be. If you start at age 25, for instance, you only have to save $15 a day to reach seven figures by age 67.
But what if you're able to put away more each month?
We used CNN Money's helpful millionaire calculator to estimate when you'll become a millionaire if you're able to contribute $500 to an investment account each month, assuming that you're starting from scratch with zero savings.
- With a 4 percent rate of return, you'll become a millionaire in 51 years, by 2068.
- With a 6 percent rate of return, you'll become a millionaire in 40 years, by 2057.
- With an 8 percent rate of return, you'll become a millionaire in 33 years, by 2050.
- With a 10 percent rate of return, you'll become a millionaire in 29 years, by 2046.
Want to get rich sooner? If you can hack it, putting away $2,200 per month will make you a millionaire in 20 years, and $6,000 per month will get you there in 10.
These differences speak to the power of compound interest, in which any interest earned accrues interest on itself, and a little money invested now can end up being more than a lot of money invested later. In short: If you want to become a millionaire, the earlier you start investing, the better.
This calculation doesn't account for the many variables that can affect your wealth over several decades, including windfalls, emergencies and rises or dips in the market. But it can give you a good idea as to whether or not you're saving enough to retire comfortably.
Of course, saving hundreds or thousands a month is an ambitious goal. Even $2,100 a year is more than most Americans can manage. But getting into the habit of saving any amount will be great for you in the long run, and if this inspires you to get started, the simplest way 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.
You can also research low-cost index funds, which Warren Buffett recommends, and online investment platforms known as robo-advisors.
Don't miss: Here's how much you need to save each month to be a millionaire in 10 years
