Half a million in 5 years. Possible?

[skchamp]

I am 20 year old student from India currently doing freelancing on a part time basis. I have been reading about personal finance and financial freedom since 2 years now. I plan to start my own web design business after passing out of college and have already started working in that direction.

My goal is to make at least half a million in another 5-7 years from now. Can anyone please suggest a plan for me? What strategies and plans can I use to reach my goal? I don't have much savings to consider as of now.

Would be extremely happy if MMMians here suggest a plan or even some small tips to help me achieve my goal.

Thanks in advance.

[iamadummy]

online poker

[thebeachbum]

save $100,000 a year for 5 years.

I think we need more information to be more helpful. What kind of freelancing are you doing? how much money are you making doing freelance? whats your growth? whats your market? how many customers do you have? what are your expenses both personal and for the business?

the more info you can give the better we can give advice.

[Retire-Canada]

Use this: http://www.moneychimp.com/calculator/compound_interest_calculator.htm

To figure out how much money you need to save/invest each year at various interest rates to reach $500K.

$75K/yr saved/invested for 5yrs at 10% = $503K

$48K/yr saved/invested for 7yrs at 10% = $500K

Try various interest rates to see what the savings amount you need will be.

The other option is to build the business while not saving and sell it for $500K in 5-7 years.

Both options are totally possible.

-- Vik

[mrshudson]

Or $5000 a month for 7 years assuming 7% compounding. Assuming you are able to save 60% of your take home pay, you need to take home $8300 (net, after taxes). Not sure what your tax situation is, but assuming 35% of gross goes to taxes, you need to make about $150,00 per year to get to that goal.

Possible if you are a doctor or a lawyer in biglaw.

[Gone Fishing]

Your goal is not unreasonable at all.  Many here have done what you have proposed or close to it. Your first priority at this point should be to stay out of debt and build your income.  Whatever you end up making, income wise, make a point to save and invest as much as you can. As far as investments go, many here are fans of low cost diversified index funds such as those offered by Vanguard and Fidelity.  Once you start investing, manage your taxes by taking advantage of all the tax deferred options you can (401(k), IRA, etc.).

Good luck!