Save $1 Million Dollars in 10 Years By Doing This (2024)

Jeff White

·9 min read

Save $1 Million Dollars in 10 Years By Doing This (1)

A common number that people generally seek to save is $1 million. It’s a good start to long-term retirement and is a threshold that people view favorably as they seek to reach their financial goals. Saving $1 million is doable, but it becomes more challenging the fewer years you have. You’ll need to take into account a number of factors to maximize your savings and make certain investments in order to save $1 million in 10 years. You can also work with a financial advisor who can manage your assets for the future.

Factors That Contribute to Saving $1 Million

In order to save $1 million you’ll need to make sure you’re able to earn enough so that you can pay for your living expenses while saving that amount of money. There are a number of ways to go about accumulating that amount of money for the future, but here are some of the most important:

  • Your Income:The higher your regular income, the more money you’ll likely be able to save. Looking for ways to increase that income whether it be through getting a new job, starting a business or working on a side hustle is important in order to save money in a relatively short period of time.

  • Percent of Your Income That You Can Save:Saving for the long-term typically brings a recommendation of 10-15% of your income, but if you’re trying to go from $0 to $1 million in 10 years then you’ll likely need to increase that percentage. The exception is if you have a very large amount of income coming in every year.

  • Your Investments:The investments you choose will likely be key to accumulating additional wealth. You could put money into real estate and build value over many years or you could look to invest in historically riskier investments, such as the stock market and aim to accumulate wealth faster.

  • Your Annual Expenses:How much you spend plays a major factor in how much you save because the more you spend, the less money you have to invest or put away for the future.

How Much Money You Need to Save Per Month

In order to hit your goal of $1 million in 10 years, SmartAsset’ssavings calculator estimates that you would need to save around $7,900 per month. This is if you’re just putting your money into a high-yield savings account with an average annual percentage yield (APY) of 1.10%. If that amount isn’t doable with your income level then you’ll need to make riskier investments in order to hit your goal.

Here are some examples of how much you’ll need to save per month based on what your rate of return might be.

  • 3% Return: Save ~ $7,200 per month

  • 5% Return: Save~$6,500 per month

  • 7% Return:Save ~$5,900 per month

  • 10% Return:Save ~$5,000 per month

These numbers are just estimates based on a potential annualized return on your investments. Keep in mind that the market can fluctuate quite a bit and it could impact how much you’ll need to save so it’s important to maximize your savings every month if you want to get to $1 million as quickly as possible.

5 Steps for How to Save $1 Million in 10 years

Save $1 Million Dollars in 10 Years By Doing This (2)

In order to save $1 million in 10 years you’ll need to take all of the above factors into account and then create the right savings strategy that can help you get there. There are five steps that anyone can follow that will help get them down the right path toward the end goal, but the right method of saving to hit $1 million will depend on your own personal financial situation.

Step 1: Determine Your Appetite for Risk

Before beginning down this path of saving $1 million, it’s important to understand how you’re going to get there. Your appetite for risk can guide you because it provides how much of your money you’re willing to risk in order to maximize the potential return at any given time. The amount of risk you’re willing to stomach could be very different based on your age or how much money you have already saved.However, the more risk you’re willing to take on, the more potential return you may be able to earn if the market has a successful run.

Step 2: Build and Follow Your Investment Strategy

Once you have a good grasp on how much risk you’re willing to take on then you can create an investment strategy that aligns. The investment strategy will be your goal of reaching $1 million within a shorter time period than most save for retirement. You might want to invest in real estate if you’re looking for a slow and stable return while you might want to heavily invest in the stock market if you’re willing to take on more risk. Whatever you choose, the best investment strategies typically will have some level of balance throughout your portfolio.

Step 3: Make Regular Investment Contributions

If you’re going to accumulate $1 million that you save within 10 years then you’ll likely need to set money aside for investments on a regular basis. This will give you the money you need to buy assets so that they can grow over time. The more money you’re able to invest, with the right strategy, the more you’ll be able to have saved after a decade. A regular commitment is a key ingredient to building your wealth.

Step 4: Find Ways to Earn Extra Income

A great way to save more money is to make more money. Whether you can change jobs or take on another job, bringing in more income will make your goal easier to obtain. Many people consider a side hustle or extra project work in order to help fund their ambitious savings goals. Whatever you choose, looking at how you can accumulate more money for saving or investing can be a huge help.

Step 5: Save Money Where You Can

If you maximize how much you can earn and invest, then the next thing you can control is how much you’re spending. Cutting your expenses wherever you can save money that you can put away or invest to grow your total wealth. If you invest the amount of money that you save then the return on investment on cutting costs is much more than just the amount of money you don’t end up spending. This takes discipline and real effort in order to keep your costs as low as possible.

Where to Place Your Money Once You Reach $1,000,000

While the market is a great place to grow your wealth, it might not be the best place to save your $1 million once you build that much. The best practice is typically to have money in multiple accounts to diversify any potential risk. Here are some options available to help you save your money once you reach the $1 million mark:

  • High-yield savings accounts:A high-yield savings account is a safe place to put your money as it will sit with a large financial institution and you can get up to $250,000 protected by the FDIC. You’ll typically earn around 1% – 3% annually on your money, depending on the bank and account you chose. At time of writing, however, it was possible to find a high-yield savings account paying an annual percentage yield of 4.03%.

  • Certificates of deposit (CDs):A CD is a low-risk investment option with a low potential payout that provides a safe place to stash your money. You won’t have access to the funds for the duration of the CD’s term without paying a penalty. However, they do typically receive protection for the same amount as a savings account.

  • Money market accounts:A money market account is similar to a savings account but if you need to access the money more regularly then it could be a good option as it has some similar features to a checking account.

  • Treasury bonds:Treasury bonds can be held for up to 30 years and are backed by the government. The return is typically small in comparison to other types of investments, but they are generally safe.

Bottom Line

Save $1 Million Dollars in 10 Years By Doing This (3)

Saving $1 million can seem like a daunting task that requires a lot of navigation. The journey may create frustrations and you may need to exercise extreme discipline in order to hit that goal within 10 years. However, with the right strategy and execution hitting the $1 million in savings is something that can change your long-term financial outcome. If you’re not sure you can get there on your own then you can work with a professional to help create a plan or manage your assets for you.

Tips for Investing

  • Trying to analyze the market and figure out where the best place to invest your money can be hard, but working with a financial advisor can make it substantially easier. A financial advisor can help you make a long-term investment plan and even manage your assets for you. If you don’t have a financial advisor, finding one doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

  • As you’re looking at different investment options, it’s important to understand how each investment might impact your overall portfolio. You can use SmartAsset’sasset allocation calculator to see what the suggested portfolio breakdown would be to help you reach your $1 million goal.

Photo credit: ©, © Noipho, © Bila

The post How to Save $1 Million Dollars in 10 Years appeared first on SmartAsset Blog.

Save $1 Million Dollars in 10 Years By Doing This (2024)


Save $1 Million Dollars in 10 Years By Doing This? ›

In order to hit your goal of $1 million in 10 years, SmartAsset's savings calculator estimates that you would need to save around $7,900 per month. This is if you're just putting your money into a high-yield savings account with an average annual percentage yield (APY) of 1.10%.

How long does it take to save $1 million dollars? ›

If you invest $1,000 per month, you'll have $1 million in 25.5 years.
Monthly contributionTime to reach $1 million with an 8% annual return
$50033.3 years
$1,00025.5 years
$2,50016.3 years
$5,00010.6 years
1 more row
Nov 20, 2023

How many years would $1 million in retirement savings last? ›

Around the U.S., a $1 million nest egg can cover an average of 18.9 years worth of living expenses, GoBankingRates found. But where you retire can have a profound impact on how far your money goes, ranging from as a little as 10 years in Hawaii to more than than 20 years in more than a dozen states.

How to save $1000000 in 15 years? ›

After maxing out your 401(k) contribution, you'd need to invest $833 of your take-home pay, per paycheck, every month for 15 years in order to have a million.

Can you still retire on $1 million that's what today's millionaires want to know? ›

Figuring Out How Much Is Really Enough for Retirement. With careful planning and a solid investing plan, it is absolutely possible to retire with dignity on $1 million today (no matter what some blogger writing from their mother's basem*nt might try to tell you)!

How long would it take to save $1 million in 10 years? ›

In order to hit your goal of $1 million in 10 years, SmartAsset's savings calculator estimates that you would need to save around $7,900 per month. This is if you're just putting your money into a high-yield savings account with an average annual percentage yield (APY) of 1.10%.

Can you live off interest of $1 million dollars? ›

Living off a $1 million portfolio requires a strategic balance between securing steady income and managing investment risks. While some may find comfort in the lower returns yet higher security of Treasury bills, others might lean toward the potentially higher but more variable returns of index funds.

How many people have $1000000 in savings? ›

In fact, statistically, around 10% of retirees have $1 million or more in savings.

What is the best state to retire in 2024? ›

Out of all 50 states, the Sunshine State topped WalletHub's list of best states to retire, but with Florida's considerably high cost of living -- some might wonder why it's still the favorite among retirees. Get South Florida local news, weather forecasts and entertainment stories to your inbox.

How many people have $3,000,000 in savings in usa? ›

1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More.

At what age can you retire with $1 million dollars? ›

Retiring at 65 with $1 million is entirely possible. Suppose you need your retirement savings to last for 15 years. Using this figure, your $1 million would provide you with just over $66,000 annually. Should you need it to last a bit longer, say 25 years, you will have $40,000 a year to play with.

How to get rich in 5 years? ›

Here are seven proven steps to get you wealthy in five years:
  1. Build your financial literacy skills. ...
  2. Take control of your finances. ...
  3. Get in the wealthy mindset. ...
  4. Create a budget and live within your means. ...
  5. Step 5: Save to invest. ...
  6. Create multiple income sources. ...
  7. Surround yourself with other wealthy people.
Mar 21, 2024

How do millionaires live off interest? ›

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

How much money do most people retire with? ›

Average retirement savings balance by age
Age groupAverage retirement savings balance amount
1 more row
Mar 5, 2024

What is the average 401k balance for a 65 year old? ›


How much does the average 70 year old have in savings? ›

The Federal Reserve also measures median and mean (average) savings across other types of financial assets. According to the data, the average 70-year-old has approximately: $60,000 in transaction accounts (including checking and savings) $127,000 in certificate of deposit (CD) accounts.

Is it possible to save 1 million dollars in 5 years? ›

Saving $1 million in five years is a lofty goal, but doing so will allow you to live off the interest payments of your nest egg. Hitting your target means you can choose what your life looks like next, whether it's continuing to build wealth, taking time off to travel or pursuing your dream career.

How to save $1,000,000 in 30 years? ›

To save a million dollars in 30 years, you'll need to deposit around $850 a month. If you make $50k a year, that's roughly 20% of your pre-tax income. If you can't afford that now then you may want to dissect your expenses to see where you can cut, but if that doesn't work then saving something is better than nothing.

Can $1 million last 30 years? ›

A recent analysis determined that a $1 million retirement nest egg may only last about 20 years depending on what state you live in.

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