Calling yourself a millionaire has such a nice ring to it, or so most of us have imagined to be the case. But what if this wasn’t such a far removed notion? What if saving R1 million was something so doable that you’d kick yourself for not having thought of it sooner?Did you know, the average South African doesn’t earn a million over 10 years. And that’s before paying all the bills? Even the average person in the top decile (top 10%) has to work for four years to make a million. If you’re in the ninth decile (i.e., better off than 80% of South Africans but not in the top 10%), it will typically take you over 10 years to earn a million rand after deductions.
Saving a million Rand is a doable venture.
Get Into the Saving Habit
20th Century wisdom and evidence demonstrates conclusively that you are unlikely to achieve the financial independence and personal wealth you want, unless you make saving a regular monthly habit.
The Math of Becoming a Millionaire
- If You Save: R100 per month
You’ll Be a Millionaire In 58 years and 6 months. That’s a long time – if you’re 25 now, you’ll be 83 by the time you’re a millionaire – so consider saving more.
- If You Save: R200 per month
You’ll Be a Millionaire In 48 years and 10 months. Notice how simply saving an extra R100 per month (R200/month instead of R100/month) shaves a decade off the time it takes you to become a millionaire.
- If You Save: R400 per month
You’ll Be a Millionaire In 39 years and 4 months. That means if you’re 25 now, you’ll be a millionaire at age 64 – in time for retirement.
- If You Save: R750 per month
You’ll Be a Millionaire In 31 years, 1 month. If you’re 25 now, you’ll be a millionaire at age 56.
- If You Save: R1,000 per month
You’ll Be a Millionaire In 27 years and 6 months. If you have a baby today, you’ll be a millionaire by the time you dance at your child’s wedding, or maybe by the time your grandchild is born.
- If You Save: R1,500 per month
You’ll Be a Millionaire In 22 years and 9 months. What a huge improvement over the “58 years” we were quoting at the R100/month savings rate!
- If You Save: R2,000 per month
You’ll Be a Millionaire In 19 years and 7 months. Have a baby today, and you’ll be a millionaire when he or she is in college.
- If You Save: R2,500 per month
You’ll Be a Millionaire In 17 years and 3 months. Have a baby today, and you’ll be a millionaire before your kid is out of the house. If you’re currently 25 years old, you’ll be a millionaire by age 42.
Want to run your own calculations? There are many online calculators can help you.
Control Your Money (Don’t Let It Control You)
Millionaires set a goal and then work toward it. There’s never a nebulous plan for a million.
One of the first steps in that plan is often to get rid of your debts and take control. Debts have a nasty habit of controlling you and you have to take control of them before you can ever achieve bigger financial goals!
Get started. If you want to become a millionaire, you need to decide to do it and get started. If you are not be able to save money right now because of debt or other financial obligations, you should work on those issues first. A Once you have that started, you can begin your millionaire journey.