Want To Be a Millionaire? How Long It’ll Actually Take To Get There on Your Salary

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Over a long enough time horizon, anyone with spare income can become a millionaire. No, seriously. At a 10% average return, you can become a millionaire in under 40 years by investing just $155 each month. But who wants to wait four decades to become a millionaire? 

Here’s how the math breaks down to get there faster — and some tips to make it a reality sooner rather than later.

The Math To Become a Millionaire

Becoming a millionaire takes discipline for investing consistently and time for compounding. The less time you give your investments to compound, the more you have to invest out of your own pocket. The math is pretty startling when broken down. 

Over time, U.S. stock markets have delivered a long-term average return of around 10%. Based on that rate of return, you’ll have to invest roughly this much each month to become a millionaire over these time horizons:

  • 5 Years: $13,000
  • 10 Years: $5,000
  • 15 Years: $2,500
  • 20 Years: $1,350
  • 25 Years: $760
  • 30 Years: $450 
  • 35 Years: $265
  • 40 Years: $155

Tips To Become a Millionaire Faster

Rhett Stubbendeck, CEO of LeverageRX Inc., said what no one wants to hear, but everyone needs to: “Becoming a millionaire is less about hitting a jackpot and more about strategic, consistent actions over time.”

Once you accept building wealth requires saving and investing far more of your paycheck than you’d like to, a few questions rise to the surface. Start asking yourself how you can save and invest more of each paycheck, how you can earn more each month and how you can earn the highest risk-adjusted returns. 

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Those are the three levers you can pull to build wealth faster — and these are some ideas to help you work those levers.

Start With Stocks

Stocks are simple to invest in. You can open a brokerage account and IRA for free, and start investing in index funds with small amounts. 

If you don’t know where to start, just buy shares in VTI, Vanguard’s Total Stock Market ETF for easy diversification. In the beginning, also consider choosing stocks for strong average annual returns. Don’t dilute your returns with bonds as a younger investor looking for growth. 

Fend Off Lifestyle Inflation

Most people feel like they’re living right on the edge financially — because they are. Every time they get a pay raise, they find new ways to spend it. Faster car, fancier home, more meals out and so on. 

It’s called lifestyle inflation, and it’s insidious. You’ll never build wealth if you keep spending every extra dollar that comes your way.

Try a thought experiment: What would it take to scale your lifestyle spending back to where it was just five years ago? How much money could you save and invest each month if you did so?

At the very least, vow to freeze your current spending, even as you strive to earn more.

Live Frugally To Boost Your Savings Rate

Where does your future wealth come from? 

It comes from your savings rate — the percentage of your pay that you save and invest. It doesn’t come from sudden windfalls.

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“Wealth rarely comes overnight but builds incrementally,” explained family law practitioner Katie L. Lewis. “It involves strict budgeting and smart investment. By consistently applying disciplined financial habits, consulting with experts for investment advice and leveraging every financial resource wisely, the path to millionaire status on an average salary is not just a dream but an achievable reality.”

Again, no one wants to spend less. But those who do are the ones who become millionaires, and sooner rather than later. 

House Hack

If there’s one cheat code to supercharge your savings rate, it’s house hacking: finding a way to generate enough income from your home to offset your housing costs. 

In other words, to score free housing. Because if you knock out your housing expenses, you free up a huge percentage of your income to go toward investments. 

Ideas include buying a small multifamily property to move into one unit and rent out of the others, renting to a housemate or two, renting your home on Airbnb and renting out an accessory dwelling unit (ADU) in your yard.

Diversify When You’re Ready

Carl Rodriguez of NX Auto Transport noted you can boost your returns even as you protect against volatility and risk by diversifying outside the stock market. 

“Consider diversifying your portfolio with alternative investments such as real estate, peer-to-peer lending or investing in startups. These investments can offer higher returns and help you reach your goal of becoming a millionaire faster.”

Start Now

No, really — stop what you’re doing and start outlining ways you can spend less and earn more. Grow that gap between what you spend and what you earn. 

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Can you pick up a side hustle? Get a raise or a new job that pays better? Get the career credentials you need to climb to the next level? 

How can you spend less? How can you house hack to knock out your housing payment? 

Get creative. And then get rich. 

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