Become A Millionaire With Just A Dollar A Day Or Not

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# Become A Millionaire With Just A Dollar A Day Or Not

Cherie Tan

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One dollar a day? Is it THAT easy to become a Millionaire? Where do I begin? Can I start today? Sign me up! Wait, hold onâ€¦ This sounds pretty dubious, is that even possible?

## Purely Saving One Dollar

Assuming there are 360 days a year, saving one dollar a day would take youÂ 231 yearsÂ to make your first million onÂ pure savings. I donâ€™t know about you but I definitely do not have 231 years to live, even Abraham died at age 175. If he had saved a dollar a day, he would have only saved \$766,500, a little short of a million.

Sorry to burst your bubble, folks! But letâ€™s see how we can work around our situation, shall we?

## Invest One Dollar â€“ Power of Compounding

Same as above, but you invest it and manage to earn 6% in return annually. That would take youÂ 88 yearsÂ to reach \$1 million, in fact, \$1,081,252 to be exact. Thatâ€™s almostÂ 2.6 times fasterÂ than just purely saving, thatâ€™s the power of compounding. Yes, I did use a bit of trial and error and my trusty financial calculator to get this result.

## Double that Dollar, Make that \$2

What happens if you double it? Instead of putting a dollar in your investment a day, try \$2. You would reach your first millionÂ 11 years earlier, takingÂ 77 years.

### TRIPLE, QUADRUPLE, QUINTUPLE THAT DOLLAR

How much to save a day?How long to reach S\$1 million?
\$1050 years
\$2039 years
\$3033 years
\$4029 years
\$5026 years
\$6023 years

Now, you are probably calling me mad. Saying how are you going to save \$60 a day if you donâ€™t even have that. But letâ€™s look at the numbers in a month.

How much to save a day?In a Month
\$10\$300
\$20\$600
\$30\$900
\$40\$1,200
\$50\$1,500
\$60\$1,800

Still not convinced it is possible? Letâ€™s show you that it is possible.

We are a huge advocate onÂ allocating our salaryÂ proper. ThereÂ are many variations as to how you could do it, for us, we follow our â€śgolden ruleâ€ť of 20/50/30, where you save 20% of your salary, spend 50%, and 30% of your salary goes into your investments.

### An Average Chap

• Monthly Salary: \$3,000
• Allocates his salary according to the â€śgolden ruleâ€ť

### Savings/Expenses/Investments â€“ 20/50/30

Savings
(20%)
Expenses
(50%)
Investments
(30%)
6001,500900

Placing 30% of your salary, \$900, is the same as investing \$30 a day. Now, does that sound more achievable?

### Reduce Savings, Increase Investment â€“ 10/50/40

Another way to increase the allocation of your investment is toÂ reduce your expenses, meaning the salary allocation ratio could be 20/40/40 (savings/expenses/investments) instead.

Savings
(10%)
Expenses
(50%)
Investments
(40%)
3001,5001,200

### Increase Investment, Reduce Everything Else! â€“ 10/30/50

In ourÂ previous article, we showed you how it is possible toÂ reduce your expenses to 30% of your salary, so if that works for you, you can try reducing your expenses and increasing your investment too!

To help you reduce your spending, you should startÂ tracking your expensesÂ as you are more aware of what you are spending on. You can download theÂ Seedly App, any other apps available or if you are very meticulous, you can even track it on your own excel!

Savings
(10%)
Expenses
(30%)
Investments
(60%)
3009001,800

By reducing your expenses and increasing yourÂ investment, you are able to place \$1,800 into your investment in a month. With that, in 23 years you could be A MILLIONAIRE!

I should have titled this as â€śEarn your first million in just 23 years!â€ť or something more click bait-y. Mehâ€¦

Donâ€™t worry if you are not adventurous enough to do park 50% of your salary intoÂ investments.

### Letâ€™s look back at the numbers.

How much to save a day?In a MonthHow long to reach S\$1 million?
\$10\$30050 years
\$20\$60039 years
\$30\$90033 years
\$40\$1,20029 years
\$50\$1,50026 years
\$60\$1,80023 years
• Using the Golden Rule of 20/50/30:Â 33 years
• Increasing your investment allocation by 10%:Â 29 years

It is not daunting after all, you will still be able to achieve your \$1 million even by allocating your salary the golden rule way.

Yes, there are some years where you would outperform 6% annually in returns, and sometimes we will underperform but on average a rough gauge would safely be around 6%.

Here are some helpful articles for you to check out if you would like to start getting into investments:

What would you do with your first million dollars? Share with us in the comments section below!

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