It seems as if a million dollars is the magic number. What would you do with a million dollars? It might seem like the answer to all of life's problems. But the fact is, you don't have to look far for a million dollars.
Let's say that you average $36,000 a year in earnings. If you work for 30 years before retirement, you will make $1,080,000 in your lifetime. If you work 40 years, you will make $1,440,000.
According to the government, the average disposbale income in the US is around $24,000 a year. This is the inocme that is left after your taxes are paid. That is around 30% in taxes -- and is probably accurate.
For simplicity, we won't look at growth and investments. We will only look at the basics of the income earned.
You worked forty years. You made over almost a million and a half dollars. You will pay the government a half a million dollars in taxes. If you have had your million in your lifetime.
If you save what the average American does, you will have saved less than 3%. That is only $30,000 -- if you ignore interest and investment returns. That is all you have left of $1,000,000.
To have $100,000 saved, you will have to save 10% of your income and work an extra 43 years.
At 25%, the savings jumps to a quarter of a million dollars saved in 43 years of work. If you factor in basic interest and some investment returns, that could easily grow into a million dollars in savings.
You may be saying that it is nice to play around with the numbers, but it just isn't realistic. I realize that not everyone has 40 to 50 years to save up. Most people can barely afford to put 10% of their income into savings. But look and see what you can do.
You may not be able to save big, but that doesn't mean that you can't ever have a million dollars. If you set aside a set percentage of your income into a sturdy investment, you will begin to see your money grow for you. The amazing compounding of interest can make a huge difference in your life. And in your future retirement.
You can dream about having a million dollars, or you can make it happen. Start small and simple. Keep with it and it will pay off.
Let's say that you average $36,000 a year in earnings. If you work for 30 years before retirement, you will make $1,080,000 in your lifetime. If you work 40 years, you will make $1,440,000.
According to the government, the average disposbale income in the US is around $24,000 a year. This is the inocme that is left after your taxes are paid. That is around 30% in taxes -- and is probably accurate.
For simplicity, we won't look at growth and investments. We will only look at the basics of the income earned.
You worked forty years. You made over almost a million and a half dollars. You will pay the government a half a million dollars in taxes. If you have had your million in your lifetime.
If you save what the average American does, you will have saved less than 3%. That is only $30,000 -- if you ignore interest and investment returns. That is all you have left of $1,000,000.
To have $100,000 saved, you will have to save 10% of your income and work an extra 43 years.
At 25%, the savings jumps to a quarter of a million dollars saved in 43 years of work. If you factor in basic interest and some investment returns, that could easily grow into a million dollars in savings.
You may be saying that it is nice to play around with the numbers, but it just isn't realistic. I realize that not everyone has 40 to 50 years to save up. Most people can barely afford to put 10% of their income into savings. But look and see what you can do.
You may not be able to save big, but that doesn't mean that you can't ever have a million dollars. If you set aside a set percentage of your income into a sturdy investment, you will begin to see your money grow for you. The amazing compounding of interest can make a huge difference in your life. And in your future retirement.
You can dream about having a million dollars, or you can make it happen. Start small and simple. Keep with it and it will pay off.
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