What Does it Take to Get to a Million Dollars?

What Does it Take to Get to a Million Dollars?

I had a very depressing/interesting discussion with the father in law this weekend.  I am a huge fan of my father in law, he is/was a great father, a successful business man and an overall great dude.

Despite being, what I always considered staunch republican, we got into a great discussion about universal health care, the public option, and Obama in general.  I won’t going into the heated discussion as I have previously explained my views on the government involved in our health care (hint: I am against public health care) because that is not the point of this point.

A conversation about politics after a few rounds of beer/scotch/wine will inevitable end up with a discussion of personal finance, and he said an amazing statement, and trust me when I tell you it was not profound by any means but made me run to my computer.

Do you Know How Much you have to Save to get to a Million?

I told you it wasn’t profound, but it did make me boot up the laptop that was next to me and head to my favorite financial calculator site, Dinky Town.  Once there I loaded up their Savings Calculator; I just started playing around.

  • 20 years of $500/month savings compounded monthly at 5% will yield you a bit over $205,000; while saving the same amount for half of the time but yielding 8% will get you a bit under $300,000.
  • 20 years of $1,000/month savings compounded monthly at 5% will yield you a bit over $412,000; while saving the same amount for half of the time but yielding 8% will get you a bit under $600,000.

All this exercise did was confirm that I need to make more money, and then create a perpentual money machine.

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