I’m going to retire a millionaire after saving exact amount monthly – there were no secret tricks, you can do it too
Retirement as a millionaire might not be as difficult as most people think, and it starts with saving $240 a month.
The key to wealth takes commitment and time, and one financial expert has broken down the steps to becoming a millionaire by retirement.
Haley Sacks revealed the steps it takes to retire a millionaire[/caption]
Haley Sacks, also known as mrsdowjones, is an entrepreneur who started her own financial media company called Finance Is Cool.
She offers financial advice to people through her memes and social media content.
Sacks shared with The US Sun the steps to becoming a millionaire in retirement.
The key is to start early when it comes to saving.
1. OPEN TAX BENEFIT INTERMEDIATION ACCOUNTS
First off, Sacks suggests opening a brokerage account for tax benefits.
Multiple accounts or investments can save you money, such as B. Your Roth IRA, 401k, or 529 College Savings Plan.
As a result, individuals’ investing activities may be tax-exempt or even tax-free.
A 401k is an employer-funded retirement plan that allows you to make tax-free contributions and invest the money for future use.
Similarly, a Roth IRA is an alternative account used to save for retirement.
IRAs have stricter annual contribution limits — those under the age of 50 can contribute up to $6,000 per year, while the maximum for a $401,000 is $19,500.
Depending on the individual’s preferences, one plan may be better than the other.
2. CREATE A BUDGET
Sacks said it’s crucial to create a budget that works for you: “Everyone is different.”
Budget varies from person to person as it depends on debt, income, rent, bills and other financial commitments.
Putting money aside for the basics first is part of being financially stable.
The basics may include:
- Housing
- Groceries
- transport
- Insurance
- Minimum Loan Payments
A helpful app for budgeting is Honeydue, a free mobile app that allows you to manage your expenses and keep track of all your accounts.
You can also create a joint budget system with your roommate or partner in the app.
3. OPEN A RETURN SAVINGS ACCOUNT
Aside from brokerage accounts with tax benefits, Sacks mentioned that opening a high-yield savings account is an option.
Many banks offer a high annualized return or APY, which acts as a return on your money.
This ensures their customers are maximizing their checking or savings accounts.
The higher the APY the better, and the average APY is 0.24 percent on a savings account.
Some banks like Consumer Credit Union, SoFi, Capital One, and Discover all offer high interest rates to help you grow your money while you save.
Sacks didn’t specify her choices of banks with which to open an account, but she did reveal some key components of a good bank.
“Make sure it’s FDIC secured,” Sacks said.
Insurance from the Federal Deposit Insurance Corporation basically protects depositors’ accounts, dollar for dollar.
This includes all accrued interest up to the insured bank’s closure date up to the insurance limit.
For example, following the bank’s collapse, Silicon Valley Bank is now under the control of the Federal Deposit Insurance Corporation.
The first $250,000 is insured in eligible accounts by FDIC.
Other factors ensure there are no monthly fees, and good customer service to help you with any questions you might have, Sacks suggested.
It’s never too late to start saving to become a millionaire.
HOW MUCH YOU CAN SAVE BY AGE
“If you’re in your 20s, you can invest as little as $240 a month, assuming you get a nine percent return, to become a millionaire by 65,” Sacks said.
“If you’re in your 30s and have investments that yield a 3 percent annual return, you’d have to invest $1,400 a month for 35 years to reach a million.”
“If they contribute to investments that yield a 6 percent annual return, they would have to invest $740 a month for 35 years.
“But if a 30-year-old chooses investments that yield a 9 percent annual return, they would have to invest $370 a month for 35 years.”
For people in their 40s, you should invest $2,250 a month until age 65 with a three percent return.
If the return is 6 percent, Sacks says you should invest $1,500 over 25 years, and if the return is 9 percent, you should save $950 a month for 25 years.
For example, the average stock market return from 2012 to 2021 was 14.8 percent annually for the S&P 500 Index.
However, there is no guarantee that this will remain the case.
In fact, it’s important to know that there are risks when it comes to investing – and you could even lose money.
There are high-risk assets and low-risk assets, so low risk generally means they have lower returns.
But on the other hand, risky assets can bring big profits, but also bring big losses.
Some low-risk investments include accounts such as government bonds, money market accounts, and savings accounts, to name a few.
Riskier investments include rental property, growth stocks, corporate bonds, cryptocurrency, etc.
GROW WEALTH AND SAVE MONEY
Sacks also revealed six secret rules rich people follow to maintain their wealth.
“You have to be in control of the money and that’s not a big deal. You just have to be cautious,” Sacks said.
“Don’t be the person who spends money to look like you have money.
“Stop obsessing about looking rich and obsess about growing wealth instead.”
“For me, being rich means being financially independent.
“It’s being able to pay your bills and support yourself, have a roof over your head and live a life you love,” added Sacks.
Being financially independent and stable is essentially the kind of wealth Sacks people strive for.
Maximizing your money and implementing small habits in your life can also help you save.
Read more about how many Americans are worried about high inflation.
Also, where you live affects how much you spend.
https://www.the-sun.com/money/7701200/retiring-millionaire-savings-grow-wealth/ I’m going to retire a millionaire after saving exact amount monthly – there were no secret tricks, you can do it too
