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How to Have $1 Million

Blog, Personal Finance Tips / 9 Comments

Download The RC here.

If you have figured out your finances today and are already a thousand-aire, then you might want to take the next step and try to become a millionaire. People have placed this arbitrary meaning around have $1,000,000 as being rich, so let’s just run with it. If you want $1 million by the time you retire, it actually isn’t very difficult to get, as long as you follow two basic principles:

  1. Be willing to save some money towards retirement every month
  2. Don’t be an old fart

Everyone can do the first one, either right now or after they have spent some time fixing their current financial situation. The second principle, unfortunately, is out of our control. As you’ll see in the video, the single greatest weapon you have in your assault against $1 million is youth; it’s like an energy sword against some n0ob or a light saber against a storm trooper. You can’t lose if you use it correctly.

So open up the RC and follow along with the video, and play around with the RC to see what it will take in your specific situation to have $1 million. Maybe you are a less risky investor and want to use an 8% annual return, or maybe you’re already 25. If you start before you’re 30 and invest aggressively enough to have at least an 8% return, you should find it very manageable to have $1 million in your bank by the time you retire.

How are you going to make $1 million? Post your saving methods in the comments below.

 

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9 thoughts on “How to Have $1 Million”

    1. Kevin McKee

      Maybe I don’t understand it well enough, but it looks like that one only shows spending once you’ve retired. It serves that purpose well, but I want to know what I need to do to get there as well. Am I looking at it wrong?

  2. Mike Hunt

    Well I have $2M right now in cash at age 37- by your math if I get 10% return per year then by age 64 I will have 32 Million USD. Not sure if it’s really that easy and that i s the problem with assuming steady compounding especially as the principle gets big.

    However your lesson of saving early is definitely correct. In my opinion it’s not so much compounding that makes the difference but the attitude you develop at a young age to save as much as you can so that way as your income grows you put more away- that is what was helpful for my situation.

    -Mike

  3. Mike

    Like the spreadsheet, but I’m wondering about the inflation calculation on the withdrawls..

    The FV doesn’t seem right to me…

    I think (please correct me if I am wrong!) that the inflation formula should be taking each withdrawl age and subtract the age to start saving cell ($B$11), making the assumption that this is today’s date. Right now, it takes your age of death and subtracts your start date. Try manually calculating what the withdrawl amount is (with inflation), and you will see what I mean.

    In Cell A22, FV has the portion “($H$4-$B$10)”

    I think this should be replaced with “(A22-$B$11)” and copied down the spreadsheet accordingly.

    My two cents.

    Let me know if I’m off base! 🙂

    1. Kevin McKee

      Mike, thanks for pointing this out! I actually made some changes to The RC since I made this post, but I forgot to update the link to the updated spreadsheet. I have that fixed now. Thanks for finding that out for me.

      As far as I know, the updated sheet works, so I encourage you to take a look at it and let me know what you think.

  6. Lee

    Hi Kevin,

    The link to the RC is not working, can you possibly resolve it or send through to me please?

    Many Thanks

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