{"id":4705,"date":"2021-11-10T15:21:20","date_gmt":"2021-11-10T07:21:20","guid":{"rendered":"https:\/\/www.syfe.com\/magazine\/?p=4705"},"modified":"2024-04-02T13:55:37","modified_gmt":"2024-04-02T05:55:37","slug":"how-to-start-building-your-first-1-million","status":"publish","type":"post","link":"https:\/\/www.syfe.com\/magazine\/how-to-start-building-your-first-1-million\/","title":{"rendered":"How To Start Building Your First $1 Million"},"content":{"rendered":"\n
\"becoming<\/figure>\n\n\n\n

Becoming a millionaire is a dream we all share. <\/p>\n\n\n\n

Although having a seven-figure net worth seems tough, we\u2019re here to tell you it’s more attainable than striking Toto or 4D. With some planning and discipline to start saving and investing early, having $1 million dollars is entirely within reach. <\/p>\n\n\n\n

How much you need to save each month<\/strong><\/h2>\n\n\n\n

To illustrate how achievable the millionaire goal is, we created a chart showing how much you need to save each month to get to your first $1 million.<\/p>\n\n\n\n

We assume you’re starting with no initial savings, and that you’ve committed to investing on a monthly basis, a strategy known as dollar-cost averaging<\/a>.<\/p>\n\n\n\n

The average annual return is taken to be 8%, which is reasonable considering the average annual return of the S&P 500 over the past 30 years has been 10.7%. <\/p>\n\n\n\n

\"Savings
Note: Investment returns may vary each year. Average annual return is estimated to be 8%. Investment amounts have been rounded up<\/figcaption><\/figure>\n\n\n\n

How much you need to save depends on when you want to reach $1 million. For instance, if you want to become a millionaire in 20 years, you’ll need to start putting away $1,700 each month in an investment account. <\/p>\n\n\n\n

For mid-career professionals earning $10,000 or more every month, that’s still less than 20% of your salary allocated to your wealth goal. Most financial experts recommend the 50\/30\/20 rule when it comes to managing your money:<\/p>\n\n\n\n