Everyone at some point in their lives must have wondered what it would be like to be a millionaire. Theoretically, if you save a little bit of money each year, then you could actually be living the dream.
Many of us do try to save some where we can. A tenner each week and by the end of the year, we’ll be rolling in cash right?
It always seems to get built up to a decent amount, before going for a Friday night out and splashing the lot! If we were committed enough to saving each month, how much would we have to keep putting away before we have seven figures in our bank accounts?
The average income of an adult in the UK is £21,000 according to HM Treasury budget analysis. Which is approximately a paycheck worth £1,500 every month.
If you earn the average salary and start saving £200 a month or £6.60 a day with a five per cent rate of return, you will be a millionaire…
By the time you hit 83.
This calculation, using thisismoney.co.uk however, doesn’t take into account any promotions increases or monthly marriage assets.
Most of us however just can’t afford to save back £200 each month, so sadly the chances of this happening are fairly low.
According to the Telegraph, we spend £2,500 a year on lunch and snacks, and we probably spend money on other needless items too.
Saving up to become a millionaire at 83 doesn’t seem very realistic, but I’d be more than happy saving up to go on holiday every year myself!
I guess we can always keep dreaming!