Retire a Millionaire on Just $35 a Week
Whether you work at home or in an office, you work hard to make a living. But the truth is, providing for a family is expensive. Add financial setbacks into the mix, and it takes all your energy just to cover the bills.
Saving for retirement? Well, that’s a dream for another day.
Or is it?
We’ve got good news! You don’t need a big, cushy salary to fit a comfortable future into your budget. Here’s an easy plan you can start today.
Small Chunks Equal Big Change
Typically, we talk about investing in percentages: EveryDollar recommends contributing 15% of your household income into tax-advantaged retirement accounts to retire comfortably.
Everyone’s 15% is different, and the actual number may be big or small depending on your salary.
But what if we broke it down into a number that’s easy for everyone to relate to—a figure that could easily cover a dinner out or a week’s worth of daily super-sized lattés?
Let’s see what kind of future $35 a week could afford you if you invest in good growth stock mutual funds. If you’re doing the math, that would be 15% of an approximately $12,000 salary—$3,000 less than what you’d bring home in a year if you worked 40 hours a week at the federal minimum wage.
In 20 years, you could retire with $110,000 to $150,000.
In 30 years, you could retire with $330,000 to $490,000.
In 40 years, you could retire with $890,000 to $1.5 million!
Make the Most of the Meantime
Don’t have 40 years to invest? That’s okay! Just give it everything you’ve got in the meantime.
Pick up the pace. Boost your retirement budget by bringing home a little extra bacon and rolling it into your nest egg. If you doubled down and contributed $70 a week, you could retire with $230,000 to $290,000 after 20 years and $660,000 to $980,000 after 30 years.
Work a few extra years. There’s no rule that says you have to retire at 65. If you’re 45 years old, adding five more years to your timeline could boost your savings to $200,000 to $270,000 if you continue to contribute just $35 a week.
Pay off your mortgage. This is a big one, but think about how much further your money could go without a mortgage hanging over your head. It might mean sacrificing a bigger home in the short term, but it will be worth it in the long term.