Can saving make you rich?

Saving can make you rich if you do it properly by investing. You don’t need formal education or be a mathematician to invest money. It’s easy, and if you’re not interested you can invest in index funds.

Index funds are one the safest investments you can make, it’s a collection of funds that are known and trusted. The hardest part of my experience is the psychological part. You need to create a monthly budget and be strict in what you purchase.

How much should I invest?

It entirely depends on what you define as rich, I’m investing up to $30,000, and to meet that goal I invest 41% of my monthly salary in a medium-risk index fund. If you’re saving to have a good pension, 41% is a little high, but it would make you rich eventually with a normal salary.

But why take my word, I don’t know how your life is. That is why I have created a calculator which will help you figure out how much you need to save every month to get the money you look for. Play around with it below!

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How much money do you need to be rich?

In the United States, you’re generally considered wealthy if you own $2,000,000. If you invest $1000 every month in 30 years in an index fund with 9.9% interest you would need to wait around 30 years to be wealthy. If you’re able to double that, it would take 23 years to be wealthy.

It is, therefore, possible to save money to become rich, but you need to consistently save money for a very long time. That is why it is normal to invest in another way to make money, such as getting in-depth in the stock market or starting their own company.