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In 1999, Regis Philbin asked America “Who wants to be a millionaire?” as if there are people out there who would answer that question with “Nah, I think I’m good.” While being a millionaire in this day and age might not be as impressive as it once was, at least you still have $1 million to make you feel better about not being even richer.
If you’re in a position where you’ll consider yourself successful when your bank account reaches five digits, saving up a million bucks is probably the ultimate pipe dream. However, thanks to the power of compound interest, it isn’t totally unobtainable— assuming you can afford to put aside $500 a month.
Celebrity Net Worth— which is one of the best websites to visit if you’re in the mood to feel terrible about what you’ve achieved in life— decided to examine what it would take for a person to join The Dos Commas Club. Even if you think the idea of managing to save $500 every month is an absolutely absurd concept, their results still provide some pretty valuable insight about the power of putting away some money when you can afford it.
With that said, if you can swing the $500, here’s how long you’ll have to wait to hit the $1 million mark:
- With a 4 percent rate of return, you’d become a millionaire in 51 years, by 2069.
- With a 6 percent rate of return, you’d become a millionaire in 40 years, by 2058.
- With an 8 percent rate of return, you’d become a millionaire in 33 years, by 2051.
- With a 10 percent rate of return, you’d become a millionaire in 29 years, by 2047.
I wish you all the best of luck.