How much money you need to save each day to become a millionaire by age 65?

[Taran Wanderer]

Another Yahoo! Finance article:  (Why do I do this to myself?)

http://finance.yahoo.com/news/much-money-save-day-become-150000430.html;_ylt=AwrTHQaUNLhV6SwAzp_BGOd_;_ylu=X3oDMTE0YjlzcjFqBGNvbG8DZ3ExBHBvcwMxBHZ0aWQDVUkwMVRDMV8xBHNlYwNzYw--

In order to become a millionaire by age 65 (and assuming you start with zero), you have to save...

$2.00 a day starting at age 20.
$6.35 a day starting at age 30.
$20.55 a day starting at age 40.
$73.49 a day starting at age 50.
$156.12 a day starting at age 55.

Funny thing is, they are using a growth rate of 11.3% (if my math is right...).

I did a calculation for DW and I us.  With our savings and a 7.5% growth rate, we would have to SPEND $21.68 a day to end up with a million dollars at age 65.  We're saving $133 a day. Looks like we are going to have trouble being at $1 million at age 65.  Oops, mustachian problems...

[patrickza]

Some good comments there, even seems we have a mustachian before the term was coined:

Commenter 9 hours ago
I have always loved finance, and the pursuit of trying to make a buck. I tried and failed, several times, but by my early 20's, was on my way to financial independence. With hard work, frugal spending, and some luck, I reached my first million, at 30. Now 50, that has increased 10 fold. For me, it gives me a sense of security. Being frugal is a way of life. It teaches appreciation for the small things. I have never felt deprived. I am so fortunate to have retired at 30, and enjoyed so much leisure time.

[K-ice]

I would rework it with a lower return 6~7%. I haven't seen 12% consistently.

Also, the first column could be years to retirement countdown. Ie. 40, 35, .... 10, 5. That would be more useful for Mustacians.

Oh and instead of 1M it could be tailored to what you think you need to be FI.

Oh, oh, you could start with a present value greater than zero.

It looks like I could have some fun with excel.

[EricP]

@ K-Ice,

6%-7% is great for real returns, but for becoming a millionaire, nominal returns is all that matters, so 11.3% (or 12% as the article states) is a fine number to use since that's still significantly lower than the S&P 500's median 25 year annualized return since inception.

[robotclown]

I don't know why they would use such a high return, and specifically point out in the article that it's too high.

But the main point is a very good one.  Start investing early.

[Drew664]

There is a great retirement app that will break this down in terms of savings needed per month with all variables adjustable (return rate,  starting amount, retirement age, etc).

I believe it's called 'financial calculator'. Fun to play around with!

[jprince7827]

Another Yahoo! Finance article:  (Why do I do this to myself?)

I did a calculation for DW and I. 

That should be: ...I did a calculation for DW and me.

Because you would say "for me," never "for I."  Prepositions are followed by "me."

Very sincere apologies for the correction. I know it's rude to correct people. It's just making me crazy nuts. Even professional writers don't know when to use "me" and when to use "I." I think I even heard President Obama say "I" when he should have said "me" recently.

I'm not correcting you, FW, as much as pointing it out to young readers here (who probably have heard the same mistake their entire lives). Thank you for the opportunity.

/end of thread hijacking

Thanks, Dad!

[geekette]

Another Yahoo! Finance article:  (Why do I do this to myself?)

I did a calculation for DW and I. 

That should be: ...I did a calculation for DW and me.

Because you would say "for me," never "for I."  Prepositions are followed by "me."

Very sincere apologies for the correction. I know it's rude to correct people. It's just making me crazy nuts. Even professional writers don't know when to use "me" and when to use "I." I think I even heard President Obama say "I" when he should have said "me" recently.

I'm not correcting you, FW, as much as pointing it out to young readers here (who probably have heard the same mistake their entire lives). Thank you for the opportunity.

/end of thread hijacking

It makes me cringe as well.  Byproduct of growing up in a family of teachers! 

[ShoulderThingThatGoesUp]

Can we talk about how people say 'myself' when they should say 'me' or 'I' because it sounds fancier? That's really grating.

[wenchsenior]

Another Yahoo! Finance article:  (Why do I do this to myself?)

I did a calculation for DW and I. 

That should be: ...I did a calculation for DW and me.

Because you would say "for me," never "for I."  Prepositions are followed by "me."

Very sincere apologies for the correction. I know it's rude to correct people. It's just making me crazy nuts. Even professional writers don't know when to use "me" and when to use "I." I think I even heard President Obama say "I" when he should have said "me" recently.

I'm not correcting you, FW, as much as pointing it out to young readers here (who probably have heard the same mistake their entire lives). Thank you for the opportunity.

/end of thread hijacking

It makes me cringe as well.  Byproduct of growing up in a family of teachers!

Drives me nuts too. I always notice when Obama or other politicians or pod-casters, etc. do it (fairly regularly). At least it is sort of an understandable error.

[wenchsenior]

It is understandable because it is so pervasive. I'm sure there are teenagers who have heard it most of their lives. Do they teach grammar and sentence diagramming in schools anymore?

Another one I hear all the time recently that is making me crazy is, "This [insert surprising data point or information about topic of interest] is really concerning!" I think what they mean is '"of concern," and I cannot figure out why so many well-educated people are saying this now.

[Taran Wanderer]

Oops, brain fart.  Corrected. Thanks, Obama...

(BTW, how did Obama get wrapped into this thread?)

[infogoon]

Do they teach grammar and sentence diagramming in schools anymore?

No. It's bad for their self-esteem, and insufficiently engaging.

[zephyr911]

Another Yahoo! Finance article:  (Why do I do this to myself?)

I did a calculation for DW and I. 

That should be: ...I did a calculation for DW and me.

Because you would say "for me," never "for I."  Prepositions are followed by "me."

Very sincere apologies for the correction. I know it's rude to correct people. It's just making me crazy nuts. Even professional writers don't know when to use "me" and when to use "I." I think I even heard President Obama say "I" when he should have said "me" recently.

I'm not correcting you, FW, as much as pointing it out to young readers here (who probably have heard the same mistake their entire lives). Thank you for the opportunity.

/end of thread hijacking

Actually, if "I" were the subject, "myself" would be the object. I did one for myself, not for I (unless you're Jamaican).

[EricP]

It is understandable because it is so pervasive. I'm sure there are teenagers who have heard it most of their lives. Do they teach grammar and sentence diagramming in schools anymore?

Another one I hear all the time recently that is making me crazy is, "This [insert surprising data point or information about topic of interest] is really concerning!" I think what they mean is '"of concern," and I cannot figure out why so many well-educated people are saying this now.

Could you fill in the blank with an example, I'm having trouble figuring out a sentence that doesn't bring pain to my ears saying it with "of concern."

For instance these sound painful:

This student loan crisis is of concern.

This score of 60 percent on the test is of concern.

This fact that 6 million illegal immigrants have crossed the border this year is of concern.

[Rural]

It is understandable because it is so pervasive. I'm sure there are teenagers who have heard it most of their lives. Do they teach grammar and sentence diagramming in schools anymore?

Another one I hear all the time recently that is making me crazy is, "This [insert surprising data point or information about topic of interest] is really concerning!" I think what they mean is '"of concern," and I cannot figure out why so many well-educated people are saying this now.

Could you fill in the blank with an example, I'm having trouble figuring out a sentence that doesn't bring pain to my ears saying it with "of concern."

For instance these sound painful:

This student loan crisis is of concern.

This score of 60 percent on the test is of concern.

This fact that 6 million illegal immigrants have crossed the border this year is of concern.

When in doubt, revise. "...is a cause for concern." Fixed.

[zephyr911]

Either way, it still comes across as "trying too hard to sound educated". To whom is it a concern? In what way is it a concern? I'd rather see the author admit that he/she exists and is personally concerned, or identify a third party who is concerned. Even better, we could stop clutching at neutrality and say something is disturbing, frightening, or potentially detrimental to a specified entity.

[igthebold]

Not sure why I'm encouraging the thread hijacking, but if you want a special word to describe what's happening with "for I" and "myself is": https://en.wikipedia.org/wiki/Hypercorrection

Sadly, "hypercorrection" is neither a portmanteau nor a neologism. It is also not a malamanteau.

[zephyr911]

You'll never be a millionaire - at 65 or at any other age - if you spend your whole day showing off your vocabulary on the MMM forum. JUST SAYIN'. ;)

[Gone Fishing]

We can debate the grammer and rates of return but I like the illustration.  It would probably be a great one for high school and college students.

[Apocalyptica602]

me like grammer nazi's Alot..

=)

Anyway, it's crazy how small those amounts are. My wife and I are saving more per day than it would take to be a millionaire starting at 55 and we're still ~3 years from 30.

We've been very fortunate with well paying careers and compatible life and financial goals.

Part of me wants to share this on Facebook to any of my ~400 20-30 year old peers, although whenever I do I get about 5% of the attention as someone who posts some stupid celebrity gossip.

... Maybe it's time to purge my Facebook friend list. Haha.