Save $1 a day to become a millionaire

Yes, it is possible to save $1 per day, or $365 per year, and become a millionaire in your early 60s. The catch is that you need to do this from very, very early in life. Even as far back as for a newborn baby or a child under 5 years of age or younger. The concept is really for an adult saving a dollar a day for a newborn, whether a child, grand-kid, niece, nephew or someone else.

If you start saving for someone when they are one year old, the person can be a millionaire by the age of 64….and the total amount that needs to be invested is only $23,360. In other words, make someone a millionaire by only saving/investing less than $24,000!

The concept of saving one dollar a day to have a million dollars will not work for teenagers, adults, or anyone who is older. It only works if you start early, so if you are a new parent and/or pregnant, start the process from the day the kid is born (or even before they are born) to help your future generation be a millionaire. Or do it for a grandkid, nice, nephew, or anyone in your life who is very young.

How is it possible to save one dollar a day and be a millionaire?

We have documented time and time again how important time is when it comes to saving and investing. The earlier you start the investment process, the better. The earlier you start the process, the less money you need to save and invest to get the same long term results. All of this is because of compounding.

Bring this concept of compounding back to saving only $1 per day. I was bored and for kicks was plugging information into an excel spreadsheet, and for fun I tried the formula of saving $1 per day from the day a kid is born and with an average annual return of 9%. This is slightly less than the Stock Markets historical return of 10%, so I actually used a slightly more conservative number. I also calculated it (for simplicity sake) as if all of the money was invested by day one of the year. Low and behold, if you save that small amount of money, you will be a millionaire at age 63 or 64.

That concept of saving one dollar per day to become a millionaire in 60s is the simplest way to look at it. Of course it does get a little more complicated. There can be challenges including there are no guarantees that the stock market and/or your investments will return 9% per year (like has been done historically) and of course it does not factor inflation into the picture. As technically your purchasing power will be reduced annually by inflation of a couple percent per year (unless of course that rate changes). What all that means is that in 60 or so years, one million dollars will not be what it is worth when you start the process.

What if I delay saving $1 per day?

Saving a dollar a day to become in millionaire by the time the person is in their 60s only works if you start saving very, very early. This is why it does not really work for anyone reading this blog post, but it would work for any nephews, kids, nieces, grandkids, or others in your life who are very young. So, start the process for those friends or loved ones. As the adult would need to save the $1 for that younger person and start an account for them. If you start to save and invest for them, this will greatly improve the kids ability to become a millionaire when they are older.

This is one reason why we think the general concept of “Baby Bonds” or something similar would be great. As anyone who saves when they are very young (or has someone save for them) has a much better chance of building wealth. The later you wait to save or invest, it becomes exponentially more difficult to build wealth, retire, or become a millionaire. Time is on the savers side if they start young. If they start later in life, time (or lack of it) is the enemy. Programs like Baby Bonds, or anything similar to the concept of forced savings as well as financial literacy for youth, we think anything like that is a great idea

If it too late for you and your family to start the process of saving a dollar a day to help reach millionaire status, then just take away from this post the importance of investing and saving, and doing it very early due to compounding. Do not wait. Also take away the importance, and understanding of compound interest and how powerful it is.

AgeAmount investedTotal Account Value
1$365.00$365.00
2$365.00$795.70
3$365.00$1,265.16
4$365.00$1,776.88
5$365.00$2,334.65
6$365.00$2,942.61
7$365.00$3,605.30
8$365.00$4,327.63
9$365.00$5,114.96
10$365.00$5,973.16
11$365.00$6,908.59
12$365.00$7,928.22
13$365.00$9,039.61
14$365.00$10,251.02
15$365.00$11,571.46
16$365.00$13,010.75
17$365.00$14,579.56
18$365.00$16,289.57
19$365.00$18,153.49
20$365.00$20,185.15
21$365.00$22,399.66
22$365.00$24,813.48
23$365.00$27,444.55
24$365.00$30,312.41
25$365.00$33,438.37
26$365.00$36,845.68
27$365.00$40,559.64
28$365.00$44,607.85
29$365.00$49,020.41
30$365.00$53,830.10
31$365.00$59,072.66
32$365.00$64,787.05
33$365.00$71,015.73
34$365.00$77,805.00
35$365.00$85,205.30
36$365.00$93,271.62
37$365.00$102,063.92
38$365.00$111,647.52
39$365.00$122,093.65
40$365.00$133,479.93
41$365.00$145,890.97
42$365.00$159,419.01
43$365.00$174,164.57
44$365.00$190,237.23
45$365.00$207,756.43
46$365.00$226,852.36
47$365.00$247,666.92
48$365.00$270,354.79
49$365.00$295,084.57
50$365.00$322,040.03
51$365.00$351,421.49
52$365.00$383,447.27
53$365.00$418,355.38
54$365.00$456,405.21
55$365.00$497,879.53
56$365.00$543,086.54
57$365.00$592,362.17
58$365.00$646,072.62
59$365.00$704,617.01
60$365.00$768,430.39
61$365.00$837,986.97
62$365.00$913,803.65
63$365.00$996,443.83
64$365.00$1,086,521.62
$23,360.00

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