Accomplishing Your Million Dollar Savings Goal

Dated: July 2 2020

Views: 145

Accomplishing Your million dollar savings goal

While a million dollars isn't what it used to be, for most of us it would be a big step up. Plus, if you can save a million, two or three million may be in your future. Are such savings really possible for you?


Anything is possible. When it comes to saving a given amount of money, time is of the essence. Let's look at a table to see what it would take on a monthly basis to save a million dollars:

Monthly Savings Needed to Accumulate $1,000,000

Years to Invest

Rate of Return






































As you can see, the earlier you start, the less you’re required to save each month. While this makes sense, it's surprising just how much more you have to save if you wait. For example, at an 8% return, you only have to save $126.08/month to save a million dollars in 50 years. But you have to save almost $5,500 a month to accomplish the same thing in 10 years. Ouch.


By the same token, the longer the investment period, the more significant the rate of return becomes. Look at the 10-year time frame; the difference isn't that large between the amounts of savings required at 2% and 8% (about 38% more). The difference at 50-years is a little over 670% between the two corresponding values.

Luxury homes for sale youngsville


So it's best to start as soon as possible and to attempt to get the greatest rate of return that you can.


But let's get practical, few of us have the foresight to start saving at 15 or 20 years of age. We have more important things to do and we always think there will be plenty of time for that later.


Let's assume, instead, that you have a timeframe of 30 years. It’s reasonable to expect a return of 10.8% over the long-term; this is the historic stock market return. As you can see, that would require a monthly savings of approximately $373. Now we're in territory that may be very feasible for you.



A few keys to keep in mind:


Utilize any employer matching contributions. This is the first place to look for help.  

Matching contributions to your 401k are like a raise. Not only will your employer give you money, but also your own contributions are pre-tax.

Use tax-deferred accounts. The numbers above assume that you do not have to pay taxes on your profits as you accumulate them. This means focusing on 401k, IRA, and similar accounts.

Leave the money alone! Every dollar you save is worth $25.16 in 30 years at 10.8%. Every dollar you spend is costing you significantly over time. So that $20 knickknack you just have to own is really costing you over $503.20. Only buy things that you either truly need or truly love.

Be patient. Your savings grow much more quickly at the end than they do at the beginning.

Saving a million dollars is well within the reach of most people. The real issue is time. Time allows even someone with a lower income to accumulate real wealth over the long haul. This means the time to get started is today, not tomorrow, and certainly not next year.


Start saving today and you'll be pleased with the results. A million dollars might not be what it used to be, but it's not too shabby either!

Homes for Sale in Blog author image

Ted Daigle

About Ted Daigle – Realtor Growing up in Church Point, LA instilled values of hard work and dedication, which has carried over into every aspect of his life, including real estate. This Lafayette r....

Latest Blog Posts

Why Selling Your Lafayette Area House with a Real Estate Professional Is Essential

Why Selling Your Lafayette Area House with a Real Estate Professional Is EssentialSelling your house is no simple task. And when you sell on your own – known as a FSBO (or For Sale by

Read More

How to Save Money on Your Monthly Home Costs

Did you know that the average American homestead spends just over $17,000 a year on home-related costs? That breaks down to around $1400-$1500 per month. If you’re looking at that number and

Read More

Your Acadiana House Could Be an Oasis for Buyers

Sellers: Your House Could Be an Oasis for Buyers Seeking More OptionsSellers have a great opportunity this season as buyer demand still heavily outweighs the current supply of Acadiana homes for.

Read More

Important Distinction: Acadiana Homes Are Less Affordable, Not Unaffordable

Important Distinction: Homes Are Less Affordable, Not UnaffordableIt’s impossible to research the subject of buying a home without coming across a headline declaring that the fall in home

Read More