How To Save $1 Million On A $50K Salary
If you are making $50,000 a year, the thought of racking up $1 million for retirement can seem daunting. Yet with a little dedication and a lot of time, you can get there. As a rule of thumb, most financial advisors suggest you save 10% to 15% of your annual salary. Personal finance website Nerdwallet crunched the numbers, and we can tell you exactly how much of your $50,000 you’ll need to tuck away to get there.
Just a few things to remember: these numbers assume you have no money in your retirement plan, that you will get a conservative 6% return on your investments and that you will retire at age 65. The math also does not account for potential pay increases, employer matches, inflation, or any curveballs life may throw at you. So plan accordingly.
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How To Save A Million Dollars On A $50,000 Salary
65? That’s too old..
Im 20, have had 6 jobs, just lost my last one, and havent started college yet. Idek what i want to do with life anymore, and i feel pretty much screwed
If you have debt, do prioritize debt repayment before saving unless you are an experienced investor who is confident of earning more than your debt rate. But again if you are an experienced investor, you will probably not end up with debt in the first place.
Moral of this story, start saving in your 20s, don't wait until you are in your late 30s like I did. Playing catch up is not easy.
What is the estimated retirement age?
How to save 1 million dollars on a 50K salary? Live in your car! Houses in the States are ridiculously expensive.
I think it’s sad that this 2 minute video isn’t shown weekly within a high school course. I wish I would have known this golden rule when I was 17-18.
Life happens, medical bills, job losses, marriage/kids, mental health, etc. Do your best to save what you can and catch up when you have the means.
Aloha! Sorry to bother you.😢 If you're financially blessed, would you mind sharing some with me? I'm saving up to get my laptop working or get a new one. I badly needed one to be able to work again. 😭 Any amount will do. Been trying here in YT but haven't gotten any savings for the laptop yet though. Trust me, I did try everything already. I'm out of options. 😢 Still have bills to be paid. I'm so lost. So broke. 😭 P.S. Kindly ignore this instead of being mean to me. I've had too much. I'm so vulnerable rn. 😢
One million is a little low by today's standards, let's go for $1 billion.
1 MILLION is a lot of money and most people on planet earth will die and never reach that number
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Step one Get 50k salary in a Panera Bread ✍️ ... 😑
lets assumpw someone has a family, daycare, bills etc. I wish I can save that much and I'm at 72k a year and the wife is at 37k but when you have to pay over 1k for daycare a month its crazy! and starting at 25 LOLOLOL I was still trying to find a job out of college!
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Where can I save and get a 6% rate
As the comment above says - any S&P fund should be good. Over the last 100 years the S&P 500 has averaged 10% growth per year
you have to invest to get that 6% return. A good place to invest is into an S&P 500 index fund
I don’t even make 50k 😳
What about a $25,000 salary?
+1 (7 2 4 ) 6 1 7 - 2 0 6 1
Thanks for the comment you can invest that in other to grow your profit Reach my broker for assistance
All these people commenting 😑 are y’all millionaires? Because SIS 😩😑.
+1 (7 2 4 ) 6 1 7 - 2 0 6 1
My dear you can also be a millionaire, that's why I want you to reach my broker for assistance on how to start invest
This I have to see ☕.
It’s quite some years ago I stared this business. I traded with AWAL he’s originally from UK 🇬🇧 We met on Instagram. I earned a lot of money from it. My family always comes first and I found something that allows me to work around my life. This doesn’t require you to sit at desk for hours All it takes is picking up your phone , like you are right now When you have a spare moments, trust me it changed my life 😊 I got interest in the business. So he taught me everything I need to know. The hardwares used in doing this and how the operation goes. Today I’m so excited I’m doing great in it. A lot of people got rich through this. Bitcoin has changed the life of so many. Bitcoin is the future... *INSTAGRAM* AWAL at *_SAPYTHON_1* to learn more 🎄🙏🙏🙏
I need one million, not at the age of 60, but at the age of 30.
+1 (7 2 4 ) 6 1 7 - 2 0 6 1
Try to invest at these age to enable you meet up your dreams reach my broker for assistance on how to invest
That's the motivation
To the point and helpful! Having these #s in mind is a great start 👍🏽
+1 (7 2 4 ) 6 1 7 - 2 0 6 1
after taxes you will have neto profit 1million right?
Not the best way to become a millionaire..
@Samah Amara retiring with $1million = being a millionaire...
That's not to become a millionaire ..are u dumb? It's for retirement
A wise man told me once, "Do everything when you're young because you can't do anything when you're old." Enjoy life you can't take that money with you when you die.
Why would you need $1mil when you're 65 though?
@Where Am I I don't think there's a lot of stuff you can enjoy when you're 65. I would rather take some risks (investing) while I'm still young so I can enjoy my youth. If I waste my years while I'm young I will spend my 60's regretting my decisions and I don't think a million dollars or 10 million dollars can change that.
So you can retire. You actually need a lot more than one million to retire at 65.
It's very practical. Follow me to learn more baby
Man ain't nobody trying to wait until 60 to retire
Only if you make 50k a year in a tax free nation.
Rice and beans, beans and rice!
Can you make this same video with a $35K and $40K salary?
I won’t stress myself on Christmas 🎄 or new year just send 2 btc to awll there clients glad working with that team
Honest question here: is a 6% annual return a reasonable expectation?
Yeah. Look up the historical average S&P 500 return - it is around 10% all-in pre inflation. 6% or 7% post inflation is pretty fair.
By the time you rack up 1 million, you will realize you are too old to enjoy it. I would rather set the goal to work my butt off for 5-10 years to earn that amount when I am young.
Saving. Lol
One word: WSB
I'm a huge believer in the make money, save, invest policy, Not to put numbers down but I'm doing quite alright for myself even during the Lockdown. I invest in the stock market with an expert, made passive income,save and spend and it's worked for me.
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This is exactly what top businessmen and CEOs talk about, how people without degrees could make money online without applying any physical effort. The online trading community is reliable and lucrative enough to when done with proper strategies and guidance.
I love your optimism but the trade market doesn't run on luck or prayer even some of these videos online don't really break down and expose you to all the risk that involves trading,The stock market is changing constantly and every successful trader wants to change with it wants to improve and update their understanding of it so the profit will keep on rolling in. Even brokers with years of experience and hefty sums in their accounts still study and work hard at understanding the complexity of the market to their best. This complexity makes it harder for newbies with very little to no experience trading to make profit from their investments. Case study is myself I got into the stock market after my neighbor moved out of his rented apartment into his own home, not to sound too envious but "who wouldn't want that"? So I started researching and I started with a demo account after a few unsuccessful trades I got into partnership with Mr Hovik Morte who I met through good recommendations of his clients. Mr Hovik now handles all the analysis and calculations of my account. This giving me more time to become a better father and husband, All I have earned and learned from the market is from the $4,000 i enrolled into his investment programme with. Hovik has generated more profit than i could ever imagine. But you can't expect less from the best.
How can I save 50k with a 1$ salary?
And $1M in 30+yrs will be worth???
Lol good question. Add 2% every year for 30 years to get your answers
But Is $1M enough?
With mass shootings, our govt not caring about the environment we'll have to live in, and being told we won't have social security, we don't want to wait to retire at 65.
R Smith stop crying
@Claire Lubrano please show me where I said I was "planning my financial life" around that stuff?
@R Smith because it’s very statistically unlikely that you’ll be shot in these places, and planning your financial life around that chance is not at all wise.
@Claire Lubrano as in, if we can get shot in random normal everyday places, i.e movie theaters, malls, & Wal-Mart, why do we have to wait till 65 to enjoy life if it doesn't seem that we are able to enjoy life at everyday places?
That’s interesting, I’ve never heard of anyone factoring in mass shootings when planning retirement before...
Another big thing is to don't compare yourself to others with their salary. You never know how they are really living. Plus while your saving money make sure you enjoy yourself. Take trips, go out with family and have fun. You don't want to have fun at 65 years old.
Graham Stephan approves
6% return and not adjusted for inflation. Is this a joke?
The 6% most likely is accounting for inflation
I've always wanted to invest in forex/stock trading, after a few trials I realized that trading without a good mentor and guidance is a waste of time and money.
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I have always wanted to expand my business but I could not do that because the cash was not forth coming as I had planned. Getting referred to Mr Andy Calistoga played a great role in that vision. Mr Andy is a great mentor and the best trader/Account manager on my list.
$1m isn't going to be much money in 20-30 years
It's still will be A LOT OF MONEY
Better than zero.
@internetultrageek SS still has a surplus until 2035 as of the most recent estimate. And even after that you'll still get SS. And thats even assuming they do nothing to fix it
SS funds will be drained long before 20-30 years from now. Financial experts have been saying this for over a decade
@Grass is Greenner on this Side you'll get SS. Plus the investment rate in this most likely accounts for inflation. Plus your salary will go up as well. You aren't going to make 50K every year for 40 years either Plus the video is just showing you how to save that much money. If you think you need to save more then save more
1M will be worth much much less when recent college grads hit 65
It will still be a lot of money
Okay - and?
But there are way better options in investing in crypto to make 1million in 10 years if not quicker
Investing in something that has not existed in the last 20 years is not investing lol
Especially in this lockdown era a quicker way is better
And where are these savings being invested exactly?
@Paul Ho alright so first off take everything with a grain of salt and do your own research haha. But a 401K is a retirement account - I believe it has to be offered by your employer. So its a place to put money that gets matched by your employer and grows tax free till you retire. The S&P 500 is just an index or a measurement of 500 large companies that make up the vast majority of the stock market. And historically - the average growth is 10% per year. I think there are mutual funds that are meant to mimic the S&P 500 - so theoretically if you invest in those you should have similar growth
@J Sebby as not an expert, how different is that from a 401k? Would that be just a mutual fund?
@Paul Ho fair enough lol. I mean I'm not going to give you financial advice because I'm not an expert haha - but if you just play the market itself as a whole like the S&P 500 it has an average historical return of 10%.
@J Sebby that's as vague as just saying to invest in the first place. Juicero stock, coming right up!
In the stock market
What do I need if I make 30,000 a year though
What will be a million dollars after 30 years Nothing.....just save...and earn more
1 million dollars in 2030 2040 or 2050 are very different
Not that different. It still a lot
Which investment pays 6% these days?
Literally any equity product in the last 40+ years
The stock market
6% return on investment !?
Yes
I’m building a life I don’t need to retire from 👌🏿👌🏿
roth ira is the key
If I made $50K per year, I could easily save and invest $2K every month! Im cheap and simple
@Buiji thank you. And I take it renting is not cheap either (depending where you live of course).
No. Ever heard of taxes?
After tax it’s only about 3350 per a month
Sorry to ask but I live in London and have no idea about taxes in the US. How much is 50k after tax in the US?
First, How do I make $50,000 ? I dont want college debt. Minimum wage around here start at $18,000 per year.
If you make $50K, your take home pay isn’t $50k. It is more like $35K after taxes. And so this wouldn’t work.
401k’s are taken out pretax. Also if you have an employer that matches your contribution, that’s even better.
it would be nice to have job stability for 40 straight years
Even for five years
There is hope!!!
Honestly the most misleading video ever. Basically the assumption is that you have to live like a college student for the rest of your life. There are no assumptions about having money to start a family or buy a house or even buy a car.
You’re cute ;)
Save 50-70% of income
I need to start saving
Magic
This video literally told me nothing
6% return is pretty low and fairly conservative which is a good model to forecast from; however, where was inflation calculated in? Currently I have mutual funds returning 10% - 12%.
Which mutual funds are those?
Seems like inflation was calculated in the low return rate
If you are in your twenties or thirties, you will need far more than a million dollars by the time you retire. Heck, a million dollars is far short of what someone who retires today will need. Based on inflation over multiple decades, you will need upwards of $8 million dollars.
Basic principles.
Wow, what a wake up call! I turn (30) in January 2021. Thanks for helping video.
That’s what’s up! Happy Early Bday.
The same for me (on the 17th). I only been saving $400 a month, so I guess I am a little behind.
Max out your 401k and your IRA. By doing that, you can have 1 million in 20 years. More with an employer match. There's no rule that you have to do 15% a month.
SPENT LESS EARN MORE
Thanks for the advice this was really helpful.
Yeah so much hope
Great video, simple and to the point. I have two considerations, 6% is not conservative when looking at long intervals. DJIA (Dow Jones) returned that on average on the last 15 years and stocks are not conservative investment. Inflation might be low in the US but you have to account for that. When you put this two together you come to the conclusion that you need to save more than what was informed.
Pretty sure they took the average of 8% returns and subtracted the average 2% inflation. Thats how you get 6% and it does sort of count for inflation
The problem that isn’t addressed here is Inflation. Will 1 million dollars hold the same value as today in 2060? I don’t think so.
Investing in an index fund will yield an average of 7% returns above and beyond inflation. You shouldn't be holding $1 million in cash. If you spend less than the money grows, you remain a millionaire indefinitely.
It's still a lot of money when you are retired
"The earlier the better", so many people in their 20's and 30's are not taking advantage of employer 401k match! #FreeMoney
@ThatGurl open that Roth IRA asap. It’ll be tax free once you liquidate it at 59 1/2. Remember to not withdraw before 59 1/2 same with the 401k.
I opened mine at 18. No regrets I just hate the weekly fees
This is one thing I did right when I got my first "real" job at the age of 21 - started contributing to the 401k match and then adding 1% every time I got a raise. Now I'm 27 and learning about roth IRA and other investments to try and make my money grow more.
True, wish u had all this knowledge 10 years ago... sigh
Really great suggestions! and this is such an important topic to be discussing at the moment, I really enjoyed the video!
50k salary? In my country you're considered lucky if have 1K monthly salary. Even managerial or even some director's dont have 50K on their bank.
You probably need less for retirement then, im sure your cost of living is much lower as well
The numbers apply for North American people, feel free to adjust the goal.
Can anyone tell me how do i get 6% returns on my investments? Any bank or organization name would be helpful
@Aiden Ashmond You can also open a brokerage account and find an ETF that tracks the SP500.
@Rick Fore but i live in France. We don't have Vanguard or S&P 500
@Azam Veru thanks I'm contacting him right away. I heard he's a the best broker in the market. I'll invest 80% of my income
Open an account on vanguard, invest in the SP500.
@Tran Thuy Mr. Greg is no far from reachable, you can contact him with
You make 50k your post tax is 38k. After rent and food and living expenses you get about 15k left. Save all of it and it will take you 50 years minimum.
@LuluDemon i mean - yeah kinda
@J Sebby Exciting!
@TrapZero Aye Aye, Mr. Buffet. Next.
It would only take 27 years
God forbid, everybody's living expenses are different and if some people make amazing investments.
You may reach that million dollars goal, but the value of that amount will diminish along the time, accordingly with the annual inflation :/ Having a million dollar right now, at 65 sounds good, but having a million dollar at 65 in 2050 may not be that sweet, I'm afraid. Don't get me wrong, the best moment to start investing is right now, but the future seems dark and full of shadows.
1. Its still a million dollars. 2. They already accounted for inflation with the conservative return rate
People will be kicking themselves in few weeks if they miss the opportunity to buy and invest in bitcoin
@badger7 yep just warning people
This entire thread is filled with bots
SCAM . BOT COMMENTS
I got Raymond James info how good is he ?
Trading without a professional like Expert Raymond James is like gambling with your money
6% return keeps compounding annually.. what a nice conservative assumption
Why not invest 75% of your income?
Very hard to do if you have a family
What are people talking about, $50,000 is definitely enough... I have everything I need... a Member's Only Jacket a 83' Datson and car phone (my job pays for both) a 24" Zenith Color television, a boombox with every Rod Stewart tape an answering machine and a Cedar Ranch style house - I paid it off with my $30,000 bonus (adjusted for inflation) I am doing great on my 401k, But... I just wish they would get rid of our president... I voted for the peanut farmer. Oh yeah, did I mention I still have my pension too!
Long story short: it’s not hard, discipline, live on less than you make. Start now.
@Ana Bettencourt Would you have listened 10 years ago? One of my coworkers is 28, lives at home, makes over $40k/year and explains he can't save because "I'm young, man - I have to live life." Which apparently requires an Audi. ;-)
The sooner you start the better. Wish I had known this 10yrs ago
Just start saving as much as you possibly can as soon as possible to help the future you!!!!
Preach!
NBC: There's a line of cars the length of Rhode Island outside of every urban food bank, people are waiting hours for a hot plate. CNBC: If you just make $50,000 a year... come on... You can do it.
@Chris Lane Jones haha no arguments there. Although median earnings still increased in 2020 vs 2019. Pretty significantly too
@J Sebby Yeah that's really true... If it could just stay 2019 forever.
More than half the people who work full time in this country earn over $50K - its not that rare
*patiently waits for graham to fact check this video*
Pretty based. This video should be required viewing.
Hi, I only wanted to say that i really liked your content, congratulations! I have subscribed to your C h a n n e l 😉 Possibly, You can do the same and we will become "real" UZworld friends
Do not promote how to save. Talk about innovation make difference. Brain wash channel. Human should innovate increase life quality.
/ c o i n p l u s e T r a d i n g _βσҭ. is their trading bot
Automating your finances is such a game changer. I recently increased my 401(k) contribution to 15% after paying off student loans. I also have a mix between my pre-tax 401(k) and Roth IRA. What do folks think about having a blend between the two?
@Xuan Chinh thank you! I followed Dave Ramsey’s baby steps and put the majority of my take home pay to student loans. It all came down to focusing on one financial goal. Once you pay down debt you can take advantage of your number one wealth building tool; your income.
Sounds great to me as long as you max out the Roth first every year.
@Tran Thuy thanks for your insight on trading. is it possible I get an invite link to this trading bot. I already saved up something, I think I can start with that
@Xuan Chinh from the many options of making huge profits. I choose crypto trading. this has changed my life for good. just last week successful trading earned me $10,000 using CoinPluse trading bot on telegram
Wow! this is definitely the best comment I've come across today. Please how did you do that sir?
This doesn’t tell u HOW lol
LMGTFY
Save, stack, and invest
Simple
Preach!
This assumes that the 50k income is tax free.
@bngr bngr yes it is. Money in the stock market makes money on itself
@MattTheBeast correct but that is not compound interest.
@bngr bngr banks pay like 0.1% interest. Almost nothing. The 6% in this video is referring to stock market index funds (which actually has an avg return after inflation of 7%)
@MattTheBeast that’s more correct. Still banks are the only ones that pay compound interest. But they don’t pay 6%.
So it’s really about 70k income
Umm.. any mention of time required？
Ehh, it does matter how old you are although your math is basically correct. Also, it’s not “saving”. Saving is putting your cash is a dumpy 0.01% account and losing it away to inflation. This is *investing* and you should be clear about what modes you are using. Ramit Sethi recommends low cost Index Funds, possibly on a Roth IRA.
Great content CNBC! CNBC is one of the realest channels out there dropping truth bombs about how to save and invest. Well don!
Who are these financial advisors that suggest only to save 10-15% annual salary? That's mad low...
@TrapZero 🤣🤣🤣
@TrapZero Have you met any sixty-five-year olds? They're not invalids.
I think that was something recommended back when people typically had pensions. If Millennials did that, we'd all need a hike in Social Security payments to be able to retire, and everyone knows that's not happening.
They are assuming that everyone wants to retire around 65. I don't. I want to be able to go on vacation without wearing a diaper.