So You Want to Be a Millionaire…

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No 18-year-old has $41,600, but that’s pretty much the only thing standing between a high school grad and them becoming a millionaire in their lifetime. Yep, through the magic of compound interest, that’s all it takes to get to seven digits. Here’s how much money you’ll need to become a millionaire by retirement depending on your age. This data assumes you’ll retire at 65 and have your money invested in something that generates 7% interest. (You can find my justification for that number here and here.) It also assumes that: 1) You make no further contributions toward your nest egg, and 2) you make no withdrawals until you’re 65. This is presented as data ONLY. I hope you find it as interesting as I did.

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All of these equal $1M:
18 – $41,600 x 47 years of 7% growth
19 – $44,500 x 46 years of 7% growth
20 – $47,700 x 45 years of 7% growth
21 – $51,000 x 44 years of 7% growth
22 – $54,600 x 43 years of 7% growth
23 – $58,400 x 42 years of 7% growth
24 – $62,500 x 41 years of 7% growth
25 – $66,800 x 40 years of 7% growth
26 – $71,500 x 39 years of 7% growth
27 – $76,500 x 38 years of 7% growth
28 – $81,900 x 37 years of 7% growth
29 – $87,600 x 36 years of 7% growth
30 – $93,700 x 35 years of 7% growth
31 – $100,300 x 34 years of 7% growth
32 – $107,300 x 33 years of 7% growth
33 – $114,800 x 32 years of 7% growth
34 – $122,800 x 31 years of 7% growth
35 – $131,400 x 30 years of 7% growth
36 – $140,600 x 29 years of 7% growth
37 – $150,500 x 28 years of 7% growth
38 – $161,000 x 27 years of 7% growth
39 – $172,200 x 26 years of 7% growth
40 – $184,300 x 25 years of 7% growth
41 – $197,200 x 24 years of 7% growth
42 – $211,000 x 23 years of 7% growth
43 – $225,800 x 22 years of 7% growth
44 – $241,600 x 21 years of 7% growth
45 – $258,500 x 20 years of 7% growth
46 – $276,600 x 19 years of 7% growth
47 – $295,900 x 18 years of 7% growth
48 – $316,600 x 17 years of 7% growth
49 – $338,800 x 16 years of 7% growth
50 – $362,500 x 15 years of 7% growth
51 – $387,900 x 14 years of 7% growth
52 – $415,000 x 13 years of 7% growth
53 – $444,100 x 12 years of 7% growth
54 – $475,100 x 11 years of 7% growth
55 – $508,400 x 10 years of 7% growth
56 – $544,000 x 9 years of 7% growth
57 – $582,100 x 8 years of 7% growth
58 – $622,800 x 7 years of 7% growth
59 – $666,400 x 6 years of 7% growth
60 – $713,000 x 5 years of 7% growth
61 – $762,900 x 4 years of 7% growth
62 – $816,300 x 3 years of 7% growth
63 – $873,500 x 2 years of 7% growth
64 – $934,600 x 1 year of 7% growth
65 – $1,000,000

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Well, how’d you do? Don’t worry if you fell short. Remember, THIS IS IF YOU MAKE NO FURTHER CONTRIBUTIONS. You could be 35 with only $80,000, and you’d still hit $1M if you put in $4,000 every year until you’re 65. Also, $1M IS AN ARBITRARY NUMBER. Here’s why I’ll never need a $1M net worth. For more proof that $1M is arbitrary, consider inflation. If I have $1M when I’m 65, that’s only a buying power of today’s $480,610!

Whaddaya think? Does this make you want to become a millionaire more or less? Does this seem doable now? Are you now dreaming of yachts and underwear models? Let us know.

It’s not that difficult becoming rich. That’s why rich people are everywhere!

You’re Closer To The 1% Than You Think

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You know it’s true. The vast majority of you reading this are fortunate as fuck. Before you all jump down my throat, I’m not directing this post at people living below the poverty line. I’m aware people are struggling in Canada and the US. This isn’t about them. I’m directing this at people making an average salary in Canada and still think of “The 1%” as some sort of financial demon keeping them from their goals. What if I told you, on a global scale, you ARE The 1%? Before you read any further, see how you stack up on GlobalRichList.com.

The average Canadian income is about $49,000/year. By salary, this puts the average Canadian in THE WORLD’S WEALTHIEST 0.65%! FYI, it only takes $42,000/year to be in the Top 1%. Why the fuck is everyone complaining? You might be envious of your neighbour pulling in $70,000/year, but don’t act like you’re a victim of a broken system. The truth is You Are Rich. You ARE the broken system. You don’t really want more money. You just want to be richer than your peers.

If we’re measuring Net Worth and not Annual Income, that gets trickier. It takes $770,000 USD to be in the Top 1%. Are we really angry at these people though? These people are just your home-owning neighbours who’ve worked hard to pay off their mortgage. This is Normal Wealth in North America!

When I first put forth the idea of writing this post, people got mad at me. “You’re ignoring people who live in Real Poverty,” they said. “Not everyone is as fortunate as you!” You know what? They’re right! I’m talking out of my ass. Richsplaining, if you will. Here’s what I’m going to do about that.

If YOU are in The 1% on a global scale – that’s everyone who makes over $42,000/year in Canada – go donate 0.1% of your Income to a charity of your choice. This should run you less than $100/year, and I recommend donating to a charity that supports the LEAST wealthy countries of the world. Africa’s not doing so great, for instance. Put some money there. Maybe you’d rather support a local cause that you and your friends can see some benefit from. Fund a community garden or donate actual money to a food bank instead of schlepping off your cans of 8-year-old Chef Boyardee. Just do SOMETHING. Whatever you demanded of “The 1%” before, YOU DO NOW. Us middle-income earners are juuuuust wealthy enough to make the world a better place at minimal loss to our own goals, and we’re juuuuust socially conscious and numerous enough to have some connection to the people we’re helping. Don’t call on “The 1%” to fix the world. They’re already doing that. If you want social change, it starts with YOU.

On a global scale, you’re incredibly wealthy. Start acting like it.

Tell us who you’re donating to in the comments.