If you start saving $500 a month today, you could become a millionaire as early as 2046.
But what if you're not able to put away that much? Are your finances still in good standing?
We used CNN Money's helpful millionaire calculator to estimate when you'll become a millionaire if you're able to contribute $100 to an investment account each month, assuming that you're starting from scratch with zero savings.
- With a four percent rate of return, you'll become a millionaire in 89 years, by 2106.
- With a six percent rate of return, you'll become a millionaire in 66 years, by 2083.
- With an eight percent rate of return, you'll become a millionaire in 53 years, by 2070.
- With a 10 percent rate of return, you'll become a millionaire in 45 years, by 2062.
As these numbers show, depending on how old you are now, putting away only $100 a month may not be a reliable long-term plan for building wealth and preparing for retirement.
Consider reworking your budget and trying to find areas where you can dedicate more to saving and investing. You want to start putting money away as early as possible to take advantage of compound interest, in which any interest earned accrues interest on itself. That means a little money invested now can end up being more than a lot of money invested later.
You're not alone if you're maxing out at $100: Even $1,000 a year is more than most Americans can manage. Getting into the habit of saving any amount will be helpful for you in the long run.
The simplest way to start 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.
If you need to make room in your budget, here are a few tips and tricks to help you get started:
- 10 small things to give up if you want to save more money
- 8 tips to save a fortune, from everyday people who are retiring before 45
- 6 smart ways to save your money, according to people who've socked away thousands
- 8 strategies for saving money from a couple that banked $50,000 last year