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Technology Here's how much you have to save per paycheck to be a millionaire by 67

10:36  07 august  2018
10:36  07 august  2018 Source:   cnbc.com

Here's exactly when you'll become a millionaire if you save $500 per month

  Here's exactly when you'll become a millionaire if you save $500 per month It could be earlier than you think.Load Error

But if you do prioritize saving for the long-term at a young age, you could find yourself a millionaire by the time you 're ready to stop working. Here ' s how much a 22-year-old would have to set aside if they earn: ,000: 10.9 percent of each paycheck .

Here ' s how much you have to save per paycheck to be a millionaire by 67 . Between fixed monthly costs, paying off student loans and other savings goals, making room in your budget for retirement contributions can seem daunting.

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Between handling your fixed monthly costs, paying off student loans and meeting other savings goals, making room in your budget for retirement contributions can seem daunting. But if you do prioritize saving for the long-term at a young age, you could find yourself a millionaire by the time you're ready to stop working.

To show you just how attainable the dream of becoming a millionaire could be, personal finance site NerdWallet created a chart showing the percentage of each biweekly paycheck you'd need to set aside to have $1 million saved by the time you're 67. As you'll see below, you may not have to set aside as much as you think — if you start early, that is, since compound interest can cause your wealth to snowball over time.

53% of millennials expect to become a millionaire — here's how long it will take them to get there

  53% of millennials expect to become a millionaire — here's how long it will take them to get there Millennials are confident in their financial futures. A new survey from TD Ameritrade found that 53 percent of millennials expect to become millionaires at some point in their lives, if they aren't already. The survey included responses from 1,519 Americans ages 21 to 37.While 23 percent believe they'll hit $1 million by age 50 or older, many expect to get there more quickly. A full 19 percent say they'll become a millionaire by age 40 and another 7 percent predict they'll become a millionaire by 30.

Here ' s how much a 30-year old would have to set aside if she earns: ,000: 18.3 percent of each paycheck . Here ' s how much you should save at every age 9:15 AM ET Wed, 22 Feb 2017 | 00:55. Kathleen ElkinsWriter, Make It.

But if you do prioritize saving for the long-term at a young age, you could find yourself a millionaire by the time you 're ready to stop working. Here ' s how much a 22-year-old would have to set aside if they earn: ,000: 10.9 percent of each paycheck .

The chart assumes you're starting at age 22 with zero dollars invested. It also assumes a 6 percent average annual investment return and various annual salaries.

Scroll over the chart to see the exact numbers.

Here's how much a 22-year-old would have to set aside if they earn:

$40,000: 10.9 percent of each paycheck

$60,000: 7.2 percent of each paycheck

$80,000: 5.4 percent of each paycheck

$100,000: 4.3 percent of each paycheck

$120,000: 3.6 percent of each paycheck

"The key here is really starting so young, at age 22," Arielle O'Shea, retirement specialist at NerdWallet, tells CNBC Make It. "Had this hypothetical investor started later, he or she would have to put away a much higher percentage of their salary. Because of that early start, even the lowest earner can dedicate just 10 percent of their paychecks to savings and end up with $1 million by age 67."

Anyone can be a millionaire — with the right mind-set

  Anyone can be a millionaire — with the right mind-set Smart investing advice from ‘Shark Tank’ star Mark CubanThe “Shark Tank” star these days doles out a lot of advice to young entrepreneurs on CNBC (CMCSA) but he says it doesn’t take a million-dollar idea to become rich.

Still, if you do prioritize saving , and especially if you save early and often, you could find yourself a millionaire by the time you 're ready to stop working. Here ' s how much a 22-year old would have to set aside if they earn: ,000: 10.9 percent of each paycheck .

Here ' s how much you need to set aside to have million by age 67 . If you want to be a multi- millionaire , start putting your money to work today. Ultimately, when you start saving outweighs how much you save , thanks to compound interest.

Ideally, you'll start putting your money to work in your 20s to reap the full benefits of compound interest, but don't get discouraged if you don't get started until later. It's still possible to build a million-dollar portfolio if you start saving and investing in your 30s — you'll just have to set aside a bigger chunk of your paycheck.

And keep in mind that depending on when you want to retire and what you want your lifestyle to look like in retirement, you may need more or less than $1 million. To help you figure out how much money you need to fund your golden years, check out NerdWallet's retirement calculator.

Once you have a specific goal in mind, get going. For inspiration, check out:

  • How to save for retirement without going broke
  • New study says save at least 11% of your income for retirement—here are 5 ways to do that
  • 8 things to give up to retire by 40, from real people who have done it

This is an update of a previously published story.

Don't miss: How this 28-year-old built up $250,000 in savings and plans to retire by 37

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