I read this article this past weekend and thought I would share it with you. I have been doing something like this for the last 8 years on my own. It’s hard to get started, I mean giving up that much $$$ each month is hard for a lot of people, but after a few months you adjust and find ways to cut corners.
The article below tells you how and where to cut corners in order to spare the extra $$$, but the bottom line is that if you can spare $451 a month, put it into a 401K or some other savings that will give you at least 8% interest each year then in 30 years you will have your million.
It’s never too late to start, I started when I was 28 and if I continue to put $432 each month by the time I am 60 I will have over 1 million dollars. That is not counting Pension and any other investment I have made.
It’s not hard….just look read below and try and educate yourself on ways to cut corners…there are out there you just need to find them.
Turn $451 a Month Into a Million Bucks
If you're 30 years old, you need to set aside $448 per month for next 35 years to become a millionaire -- if you earn a reasonable 8% annualized return in a retirement account. Don’t have $448 to spare -- or even $248? Maybe you do and don't realize it. Let's take a look at how you can come up with the cash.
Save $219 Per Month on Taxes
Here’s How: The average refund for the 2008 filing season so far is about $2,500. If you received an average refund and you are in the 25% federal tax bracket, you could be entitled to three extra exemptions worth $3,500 each. That would boost your take-home pay by $219 a month. A couple of reasons you might be eligible for more exemptions: becoming a new parent or buying a house.
Here’s How: Bring your lunch and snacks to work. Considering that the average meal at McDonald’s costs $5 and Dunkin’ Donuts charges $2 for a large cup of coffee, the brown-bag windfall can be substantial.
Save $80 Per Month on Entertainment
Here’s How: We're talking about one fewer dinner-and-a-movie night every month. That assumes you and your significant other pay the average $33 per person for a restaurant meal (according to a recent Zagat survey) and that you spend $7 per ticket, the average price at the movies (according to the Motion Picture Association of America).
Save $28 Per Month on Health Care
Here’s How: The typical family spends $1,321 on out-of-pocket health expenses each year, says the U.S. Department of Health and Human Serv¬ices. You can pay those costs with a flexible spending account, which lets you set aside pretax dollars.
Save $10 Per Month on Auto Insurance
Here’s How: The average consumer pays $829 annually for car insurance, according to the National Association of Insurance Commissioners. Raising your deductible from $250 to $1,000 can save you 15% or more.
Visit the Banking & Budgeting Center
Save $8 Per Month on a Well Maintained Car
Here’s How: Keep your car’s engine tuned and tires inflated to the proper air pressure. Those minor improvements can save you up to $100 on gas each year.
Save $6 Per Month on Generic Non-Pre.scription Medicines
Here’s How: The average American spends $185 annually on over-the-counter medications. Generics cost up to 40% less than their brand-name counterparts and work just as well.
$451 Saved in Total!
Invest the found money every month in a retirement account that earns an average of 8% return over the next 35 years, and you'll have $1 million. That wasn't too hard, right?
