How to Turn $450 a Month into $1 Million
If you started investing $448 a month at 30 years old, Yahoo Finance says that a reasonable 8% return would put your savings over the million dollar mark in 35 years. The problem, of course, is finding that extra $450. To help ferret out every quarter in your couch cushions, the article suggests seven different potential expenses that, with slight adjustments, could easily produce the extra cash you need to start down the road to a million.
For example:
Save $28 Per Month on Health Care: The typical family spends $1,321 on out-of-pocket health expenses each year, says the U.S. Department of Health and Human Services. You can pay those costs with a flexible spending account, which lets you set aside pretax dollars.
By cutting $100 a month on food by brown-bagging it, $80 a month on entertainment by skipping one night out a month, and skimping on a few other expenses, the article makes a total of $451 materialise from thin air. Let’s hear what cuts you make to ensure you’re hitting your monthly savings marks—whether or not you plan on hitting a million—in the comments.
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Comments (AU Comments | US Comments)
But what’s the point of becoming wealthy at 65? That’s a very, very long time of restricting yourself just for the dream of being a millionaire once. Think why you’d want to be a millionaire in the first place? So you don’t have to think about money and can live comfortably? Is that worth 35 years of doing the exact opposite?
It would be much smarter to use the money to pay for a house much earlier and save on rent for the rest of your life. Or put solar panels on the roof to protect yourself against rising energy costs. There’s no point in saving a lot of money, just to have a lot of money…