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How Can I Save a Million Dollars?

Use our calculator to see how much you need to save each month to accumulate $1 million.

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So, you want to be a millionaire?

For some people, building assets worth $1 million or more may not seem feasible. But with discipline, time, and a smart strategy, hitting $1 million may be more achievable than you think.

Reaching a big goal like saving a million dollars is mostly about making a plan and staying committed to it for the long term. Consider the following to accomplish your million-dollar goal and use the calculator below to guide you.

Plan to Save $1 Million

Getting to $1 million as a saver starts with a financial plan, or a strategy for your future money. It can be as simple as using the calculator below or scribbling a plan on a napkin. Whatever form your plan takes, view it as a map that shows you how to reach your financial goals. Keep in mind that the earlier you start saving, the more you can benefit from the compounding power of interest.

That means the interest you earn each month, or year will also earn interest, compounding over time. In fact, time is your greatest asset when it comes to saving because even small amounts can grow significantly with decades of compounding.

Start Saving for Your Goals Now

Supercharge your savings with a high-yield savings account.

 

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Create a Retirement Strategy

When you consistently save what you can over time, you develop a powerful tool for building wealth. Consider these practices to build your own savings strategy, especially as it relates to your retirement accounts:

  • Build a habit of paying yourself first. This is a crucial habit to start, even if it’s just a few dollars from every paycheck in the beginning. If your employer offers matching funds in a workplace retirement plan, at least aim to save enough to capture the full match.
  • Prioritize increasing the amount you can save over time. As your income rises over time, make sure to adjust your savings rate. A good rule of thumb is to aim to save 15% of pre-tax income (including any employer match) to maintain your lifestyle in retirement. Depending on your ultimate savings goals and timeline, your total savings rate may need to be higher than 15%.
  • Save and invest in tax-advantaged accounts when you can. When you contribute to accounts that offer a tax deduction like a 401(k) or health savings account, you’re able to lower your tax bill for the year you made the contribution. That may free up some money you could save for the future.

Maximize Your Income

If you’re committed to increasing your savings as your income grows, it stands to reason that earning more will result in more savings. For example, saving 15% of a $100,000 means you’ll save $15,000 per year, but saving 15% of a $200,000 income means you’ll save $30,000 per year.

To save more, consider looking for ways to develop high-income skills or advance in your career. That may mean negotiating raises regularly or even moving to a new employer for a pay increase. Some savers also earn extra money through side hustles. Saving money is crucial, but by earning more, you can dramatically accelerate the timeline to reach your goal.

Minimize Fees

Your savings can add up over time, but so can the impact of fees. If you’re required to pay monthly or quarterly fees for your savings or investments, those fees will directly cut into the interest you’re earning.

Consider a high-yield savings account like Growth Savings, which has no fees, is FDIC-insured, and allows easy access to your money whenever you need it. If you are committed to leaving your savings alone, consider a Certificate of Deposit like Growth CD. You may want to incorporate a number of CDs into your strategy to build more savings over time.

Lock in Competitive Rates

Make Growth CD part of your long-term savings strategy.

 

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Automate Your Strategy

When you’ve developed a plan for saving, make it automatic. That might include automated contributions to your employer-based retirement plan, as well as automated recurring deposits into your high-yield savings accounts. Making savings automatic removes any emotion from the decision to save and ensures consistency over time.

Remember, saving $1 million is a long-term goal—a marathon, not a sprint. Use our calculator below to map your path to $1 million and start saving today.

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.

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