How Much To Save A Month To Be A Millionaire?
The answer is to save as much as you can!
You might think that this is a rubbish answer, but i think this is very true.
If you only think about it, and do nothing about it, nothing happens.
Take small steps to move towards your goal of a million dollars. Start by saving at least 20% of your take home pay (net pay) and you will be able to see your savings grow month by month.
The main idea is to pay yourself first with the 20%. In order to see money in your bank, this is the ultimate first step to take. Do not make the mistake of saving only whats left at the month end, because normally you will be left with nothing at the end of the month.
I made this mistake of saving whatever is left after deducting all the expenses in the past, I was able to save some money but soon it became stagnant as there is no fixed amount I save each month. Sometimes more sometimes less.
After applying the “pay yourself first” technique, I was able to see significant improvements in the numbers :)
20% is just a guideline, and you should strive to spend less than you earn and save as much as you can. Before buying anything, ask yourself if this is a need or want.
I came out this guideline for myself today:
If I consider this item to be expensive, this means that I don’t really need it.
I realise that if I really need to buy an item, no matter how expensive it is, the cost is usually not my deciding factor but the brand or the model is. This shows that I really need it.
After saving an amount of 6 months to 12 months of emergency cash, you can start to invest the rest in the various investment tools that you are most comfortable with.
I realise that investments is very important in personal finance to grow wealth but use this tool with care.
Every one wants to become a millionaire but not many is discipline enough to do what it takes to achieve it.