For many, building a net worth of over $1 million might seem like an ambitious lifelong goal, but for Grant Sabatier, it was something he wanted to achieve before turning 30—and did. In just five years, Sabatier saved $1.25 million, enough to retire early.
"I get asked a lot how I did it and how someone else can too, so I decided to outline the variables and scenarios that impact how fast you, depending on your income, can save $1 million," he writes in an article for Business Insider. These are some of the biggest lessons we gleaned from his experience to fast-track your savings goals and hit millionaire status in years not decades.
Sabatier says it's crucial to know exactly where you stand across these five financial categories so you can create a realistic savings timeline like he did here. He recommends using free tracker Personal Capital.
4. Savings rate
5. Investment growth rate (how much your investments compound annually)
Investing your money is key if you want to seriously accelerate your savings timeline, he says. "While I am a huge advocate of index fund investing and recommend that most people invest for the long term using index funds, between 2010 to 2015, I was also investing in individual companies that I believe in, like Amazon, which happened to increase an insane amount in value over that time period," he writes. If you're new to investing, he recommends investing less than 10% in individual stocks.
Sabatier admits that he had a sizeable income—$257,000 to be exact—which wasn't just from his day job. Side hustles were a big part of his savings plan and helped him hit his goal ahead of schedule. "If you already have valuable skills, launch a consulting company or start side hustling. Try to make as much money as you can, and invest as early as you can so you can take advantage of the fuel of compounding, which is time," he says.
Next up: Take control of your finances with our budgeting template—it's easy.