It is ridiculously easy to reach $1 million before 60 years old, without even investing. Let me share with you how.
I will be using the following assumptions for my strategy:
- Start of career age: 21
- Start of career salary: $4,000 per month
- Bonus per year: 2 months
- Annual salary increment: 4%
- Allocation of total annual salary for retirement: 20%
If you are able to follow the above assumptions, you will earn an annual salary of $56,000 at age 21. This is considered a reasonable amount for most people today. By putting aside 20%, the amount is $11,200.
On year 2, or age 22, your annual salary should increase to $58,240. And your contribution to your retirement should be $11,648 now. And continue to save.
At age 59, your total amount saved will be $1,012,582. And you’ll become a millionaire without investing a cent.