We’ve all wished we were a millionaire at least once in our lives (especially after drowning our sorrows in retail therapy after a hard day at the office). But we rarely think about what it takes to get to that level of personal wealth, because it seems so out of reach.
But according to a new article on CNBC, hitting seven figures’ worth of savings may not be as hard as you think (if you follow the right financial rules). Other than winning the lottery, your simplest option is as straightforward as they come—you need to save. For example, if you put $15 a day away starting when you’re 25, you only need to save that much each day to hit your goal by the time you turn 67.
But what if you’re already past the age of 25? Then you need to make compounded interest your best friend and start investing now. If you put $500 a month into an investment account with a 10% rate of return, for example, you’ll reach millionaire status in 29 years, by 2046.
You can calculate exactly how long it will take you to become a millionaire with CNN Money’s millionaire calculator (finally, math we don’t mind doing). Even if you can’t put that much away each month, do what you can and remember that every $10 or $15 counts.
Pick up a copy of Think and Grow Rich for more, and share your favorite money-saving tips in the comments.