If you and your spouse are working professionals making median salaries, it’s not hard for both of you to accumulate $1 million before you reach 45 years old.
Suppose both of you started working at age 25, and always save and invest one-third of your income. If your savings and investments earn just a 3% rate of return a year, you would have accumulated half a million dollars by age 37 and a full million bucks by age 45.
And this is just for median-salaried professionals.
Let’s look at another hypothetical couple who are median-salaried managers. Let’s assume they save more, say 40% of their income. Further assume that they are able to generate a 5% rate of return.
This couple’s savings and investments will hit $1 million before they turn 39. And $2 million by age 46.
When did your savings and investments reach $1 million?
Don’t have a million dollars? Don’t worry. You probably have that upmarket condo, BMW and Birkin bag that you can be proud of. 🙂
169 Comments
to simple life:
i’m in more or less the same situation.
problem i face is i feel i’m holding on to too much cash. the money needs a new home.
other than property what else would you consider investing in?
it will depend on our risk profile and how comfortable with risks. Can opt to diversify by holding stocks or blue chips and look at safer instruments such as long term bond and endowment savings. The later is just enough to fight inflation but still better than leaving our hard earned money to bleed to earning almost zero interest.
Also contribute to SRS to reduce overall tax. Savings on tax will be ard $2k per yr, depending on tax bracket.
Alternative wld be to buy overseas property but need to understand the county’s capital gains tax and how it impacts on a foreigner buying the property there. We hope to have 1 or 2 modest overseas properties which we can stay over for a few months when we retire. With some maturity on savings plan every few yrs after we retire, that should fund our lifestyle in a more comfortable manner. That will be perfect.
Any further ideas to contribute to mine?
Byluck, by the way, may i ask when did you buy the properties and how much is your mthly house instalment for both cash and cpf portion?
its rather unrealistic. young ppl nowdays only earn like 2K plus… how can ppl earn 100K per year ?!?
It’s possible. Me n my partner did it this yr. I’m 33, he is 34. I’m graduate , he is a diploma holder. Everything is possible if u work hard, save up, plus nd a little of luck when looking for the right job. Kelvin, u nd to b more positive . When there is a will, there is a way
Me n hubby manage to save $1 million cash at the age of 34! But I have a remainder condo mortgage loan of 750k . Paid 400k down payment 2yrs ago. Condo cost me $1.2 mil. N I have 2 kids. One newborn n one 5 yr old. Mthly instalment of mortgage is fully service by cpf. I only earn 8k n hubby 4.5 k.. Typical middle sandwiched income. We have a car that is fully paid for. I hope to save my next million by age of 45. In event if Sibor increase beyond 5 percent.. I will pay up the principle sum at least 40% to save on interest rate. It’s not how much u earn.. It’s really how much u save ! We do dine in restaurant, have maid, and go oversea tour at least twice a yr. It’s ABt managing $ n occasionally spurlge on ourselves once I reach a specific saving amt. If I can do it, other middle income earner can do too!