Wouldn’t you love to save a million dollars? If that sounds like an unreachable goal, try breaking it down into segments. Start with these steps and you’ll give yourself a chance to hit that one million mark.
Surprise! The first step toward saving one million dollars is to get started. The earlier you start socking away money, the better chance you’ll give yourself to achieve your goal. As Money points out, if you have 30 years to save, you can reach $1 million by saving just $900 per month (assuming a 7 percent annual return). If you only have 20 years to save, you’ll have to save about $2,000 per month to hit the million mark.
Automate Your Deposits
Make sure you set up an automatic deposit into your savings account for every paycheck you receive. If you have to save manually, there’s a good chance you’ll find an excuse not to stash as much cash as you intended.
Every little bit you can cut from your expenses and add toward your savings goal will make a difference. Go through your budget, find the places you can trim, and have at it.
Split Things Up
Take advantage of different accounts’ interest rates to hit one million as fast as possible. You could have some cash in a high yield online savings account, some in a retirement account and more. Be sure to know the tax implications of each account. If an account no longer makes sense to use, don’t be afraid to move your money around. You have a goal in mind; determination will help you achieve it.