Under 25 years old? By saving just £3 each day, you can become millionaire by the time you are 65.
At least in David Bach’s estimation as a financial advisor, you will.
Bach is the author of the money management book Smart Couples Finish Rich. He also devised a graph showing how much individuals of various ages will need to save in order to become millionaires by the age of 65.
According to Insider, Bach emphasised
In his book, he asserts that all it takes to become wealthy is the dedication and adherence to a methodical savings and investment plan.
“To make money, you don’t need money. All you have to do is choose wisely and follow through.”
The source notes that Bach’s chart disregards taxes and that his projections are based on a 12% yearly return.
Additionally, it predates the current cost of living problem that is draining us all dry by more than a few years.
Despite this, it’s still a handy saving template for anyone who frequents Greggs ten times a week, especially since Bach suggests saving money instead of spending it on small daily indulgences like coffee.
According to Bach’s calculations, anyone who is aged 20 should try and save $2 a day (which totals $61 a year and $720 annually) if they want to be a millionaire by 65.
If you’re 25, that jumps to $3.57 a day ($109 per month and $1,304 per year) and for all you 30 year olds, that’s $6.35, $193 and $2,317 per day, month and year respectively.
35 year olds will need to save $11.35 a day, $345 a month and $4,144 a year while 40 year olds are advised to save $20.55 daily, $625 weekly and $7,500 annually.
45? Better make that $38.02 a day, $1m157 a month and $13,879 a year. And if you’re 50, you’re cutting it pretty fine, so you’ll need to make sure you put aside $73.49 a day, $2,235 a month and $26,824 a year.
There you have it. So, put down the steak bake, delete the delivery apps and consider cutting your pub visits down from once a day to once a week.