Finance Influencer Marc Russell: Why You Don’t Need a 6-Figure Salary To Become a Millionaire
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Ellie Diamond
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Molly Sullivan
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Money expert and BetterWallet founder Marc Russell has dedicated his career to helping people build wealth, regardless of their income. In a recent Instagram post, he shared how becoming a millionaire is possible even without a six-figure salary.
Challenging Assumptions
Russell believes that a six-figure salary isn’t the necessary foundation many people assume it to be. He did the math to show that a $50,000 to $90,000 income should be enough to reach that popular benchmark — becoming a millionaire.
Slow and Steady Wins the Race
According to Russell, if you earn $50,000 a year and invest 15% of your pretax income, you would set aside $625 per month. Those investments would add up to $1 million in 34 years.
As far away as that may seem, it’s closer than never. Russell says it’s about having the right mindset: consistently investing an affordable amount so that one day you’ll reach your $1 million goal.
Investing More at Higher Income Levels
Making more money can help you reach your goal faster, of course, even if you invest a smaller percentage of your income. Consider Russell’s math for slightly higher income tiers:
- $60,000: Invest 14% of your pretax income, $700 per month, for 31 years.
- $70,000: Invest 13%, $760 monthly, for 28 years.
- $80,000: Invest 12%, $800 monthly, for 26 years.
- $90,000: Invest 11%, $825 monthly, for 24 years.
Notice that each monthly investment is progressively larger in these scenarios but represents a smaller percentage of your income, and you reach $1 million slightly faster as you progress through the tiers.
Investing More To Reach $1 Million Faster
Investing each month is the key to accumulating $1 million. If you continue investing 15% of your income, or more, as your earnings increase, you can reach your goal even sooner.
Reducing your expenses is the best way to invest more of your income, and it doesn’t need to involve intense sacrifice. Consider these simple strategies for cutting back.
Shop Around for Car Insurance
If you haven’t looked for a cheaper car insurance plan in the past year, it’s time to do so. According to a Consumer Reports survey, consumers who switch car insurance providers save a median of $461 per year.
When comparing policies, ask about available discounts, such as driver monitoring. Consumer Reports respondents saved a median of $120 with this option.
Cancel Unused or Unnecessary Subscriptions
According to C&R Research, consumers spend an average of $219 monthly on subscriptions — $133 more than they had predicted. Over 40% had forgotten about a subscription they had stopped using.
Eliminating unused subscriptions is an easy way to reduce your expenses. If you don’t save enough on services you don’t use at all, look for ones you do use from time to time but may not be worth the money.
Stick To a Budget
Before you look for more ways to save money, create a budget to learn how much you’ll need to cut back. List your monthly sources of income and expenses, including your needs and wants. Consider how much you’re currently investing and how far that number is from your target.
Examine your current spending habits and decide how much you need to shift to investments. With simple changes like meal planning and secondhand shopping, you can free up more money to reach your goals.
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