How to Become a Millionaire By Age! (2023 Edition)

let's do it how to become a millionaire by age [Music] Brian I am so excited about this show because our brains are very very unique things did you know Brian that most adults have an attention span of about 20 minutes and unfortunately that's actually decreased by about 12 minutes over the past decade did you know that no I had no idea that's a 40 loss though that's a pretty big deal a big job what about this you have an average of 70 000 thoughts per day and you may say okay well what about when I'm sleeping then my brain takes a break not so fast did you know that dreaming actually takes more brain activity than when you're awake I had no idea brain super on hyper hyper over what about this one and this one we did specifically for you left-handed people have better memories this is due to the corpus callosum in lefties being larger than it is in the right-handed Pierce so I always felt like things were getting tight up there yeah elephant never forgets right what about this from Brian over a lifetime the modern human brain can hold up to one quadrillion that's one followed by 15 zeros pieces of information so there's a lot of stuff up in your brain however however your short-term memory Can Only Hold up to seven pieces of information and usually only for about 20 seconds and now there's even been some recent research that's gone into this that it's not actually seven pieces of information it's really probably closer to three to four do you believe me so this actually makes sense because I know when I go to conferences or I sit in anything where I'm supposed to pay attention make notes I really try to figure out there are three discernible things that I can actually actionable things I can take away from this event well we wanted to kind of we've done how to create Millions by age before but we're like let's actually take the research that Beau just covered on the brain how do we turn this into three actionable things everyone should do by each decade and then give the numbers as that fourth element that people hopefully remember so if you're in your 20s right and this is the way we thought about approaching this if you're in your 20s and you want to become a millionaire what are the three or four things that you need to know that you have to hone in on to make sure that you're setting yourself up for long-term success so let's jump right into this the first thing the most powerful thing is you've got to understand how compounding interest works yeah it's I think it was Benjamin Franklin because he's the one who said it says a compounding interest is the eighth wonder of the world it is this amazing unbelievable powerful mechanism that can literally be the wind in your sails to Building Wealth well but the thing is when you're in your 20s you have to figure out if is it going to work for you and actually be your army of dollars it's working harder than you can with your back your brains and your hands or is it going to work against you because you go out there and fake your lifestyle by building up debt that you truly can't afford and so we have to reframe the way that our minds work we've already talked about how unique the brain is well most folks when they think about growth specifically dollar growth they kind of think on linear terms okay if I have five hundred dollars today okay maybe I'll have a thousand by age 30 and that thousand will turn into 1500 and that 1500 will turn into two thousand that two thousand will turn into 2500 and that sounds exciting to think about 500 turning into 2500 but in reality when it comes to compounding interest the movement is not linear yeah I think a lot of people this is a big thing thing people don't understand that your money actually builds upon itself this is the power of compounding interest is you need to not think linear you need to think exponential so that's why if you can just stay the course set it and forget it for the first 10 years of investing I think you'll be shocked at how big your assets will grow in a compounding way yeah think about how different it is thinking about 500 on a linear's term turning into 2500 versus 500 if you assume a compounded 10 rate of return turning into almost thirty thousand dollars that is an entirely different picture altogether I want to move on to the second thing that I think 20-somethings ought to know if you want to be a millionaire you just need to do something so just we went ahead and borrowed the Nike slogan and said just do it a little goes a long way I know in your 20s you're broke you don't feel like you have a lot of resources sitting around that's okay because if you can just take a little bit of today you'll really will have that great big beautiful tomorrow in the future in your 20s the most most valuable asset that you have is your time and because you have so much time it only takes a little bit of money to do something pretty spectacular and if you don't believe us go to moneyguide.com resources and download our wealth multiplier it will literally show you what every dollar you have can turn into by the time you get to retirement if you wonder why we have these Koozies it says this one dollar beer can turn into it cost me 88 dollars is because that one dollar at age 20 can turn into 88 by the time you get to age 65. yeah I think once you know what money can become you'll think differently not only about how you invest your money but also how you spend your money because you'll realize hey everything that leaves my pocket or everything that leaves my bank account has the potential to be so much more so I need to be very serious about how I allocate my resources and so then the third thing I would tell someone in their 20s if you want to think about how to become a millionaire is to invest in yourself now immediately in the world in which we live what people here's oh that means I gotta go get an advanced degree I gotta go back to school I gotta go rack up student loan debt and I've heard student loan debt is not bad that is not necessarily what we mean when we say invest in yourself what we mean is figure out how to make yourself an expert and continue to be a lifetime learner that hones your craft and your skills and your profession and don't get us wrong you very well might need to go to college we just want you to be very deliberate make sure you have a return on investment with whatever you invest in yourself but the biggest goal here is to make sure you set yourself up to get the best income for your skill set your knowledge and that's why when we talk about Roi on education we actually set up a rule for you guys here's the general rule is that you want to make sure that whatever your student loan debt is coming out of college is less than what the first year anticipated income will be if you can do that I think you'll keep yourself where the debt is digestible and you can actually pay it off versus feeling like it's sitting on your shoulders for years upon years because I think a lot of us operate under the assumption that okay if I go to college and I get this degree just getting the degree automatically means I'm going to have a job and that job is going to pay me well for the rest of my life well unfortunately what the statistics suggest is that 44 of job Seekers with degrees actually regret their field of study and say man if I could do it all over again I might not have even pursued that degree gone into that field of study I would have looked at something different well it gets worse than that is that 27 percent of graduates work in their field of study if you do the reverse math on that you quickly see that we're right around 67 percent actually 73 sorry I inverted the six there 73 percent of people do not even work in their field of study be serious about the decisions and the choices you're making so if you are going to invest in yourself make sure you understand what it you what it is you are investing in and that it makes sense over the long term all right Brian so I'm let's talk about the fourth thing and this is the exciting one if you want to be a millionaire in your 20s you got to know your millionaire math you got to know what is actually required for you to become a millionaire by the time you get to retirement let's jump into the numbers here first of all this is pretty exciting stuff this is what got me I call it the the morrow money yeah because if you think about for a 20 year old if you want to be a millionaire all you have to do is set up 95 a month or maybe you worked in high school and you started saving you have that that custodial Roth IRA you if you want to start not add a dime to it 11 318 we'll get it done that's crazy for a 20 year old I'm going to say this again eleven thousand dollars saved up as a 20 year old will turn into a million buy retirement without saving another dime another dollar power of compounding growth I'm telling you it can work for you 25 year old 184 dollars a month 22 708 29 year old 302 dollars a month or thirty eight thousand two Forty Nine still all very doable get to work so maybe you're saying but guys I'm not I'm not 20 or I'm not 25 or I'm not 29 if you want to know exactly how much you should have right now to be on track to be a millionaire we actually have a deliverable called are you on track to be a millionaire you can go to moneyguy.com resources Go download this absolutely free deliverable and see how much you should have saved today to be on your way to minor status all right let's go ahead and talk about 30 somethings guys when you're 30 somethings if I could only give you three to four pieces of advice advice to and take super serious the first one is let's make wealth automatic and completely inevitable yeah it's one of those things that if you can set yourself up for Success the things that you do will protect you from falling into the Trap of the things that you don't do and one of the best ways that you can Master this is understanding deferred gratification I would care more about what's going to happen to me tomorrow than what I get to experience and what I get to have right now today well this is not an easy thing I think a lot of people instant gratifications are default we get caught in this present bias where if you go get a donut that donut tastes really good I mean and you don't have to worry about what does that mean in the future because if you eat donuts constantly obviously it's not going to turn out in the long term meanwhile when you make deferred gratification decisions is by my own I admit this to you guys when you start investing you really do need to set it and forget it for like 10 years before you really get to see how the stacking upon itself feature works that's hard so here's what when something's hard like that you need to create habits and this is something we talk about is you got to make the good habits easy and you got to make the bad habits hard and one of the first things you can do to make the good habits easy the good habit is setting up automatic wealth building guess what there's some things that immediately come to mind your employer's plan your 401k get that match money it also takes a percentage of your income it's just automatically go go in every month that is making a good habit very easy another thing that you can do is you can follow the financial order of operations Brandy you have the deliverable yeah moneyguide.com resources download the food this will actually walk you through the nine tried and true steps of what to do with your dollars to make those habits easy make those good habits easy and reinforceable so not only are you doing the things like getting the employer match but you're also making sure you have an emergency fund in place you're going to get all of your tax-free dollars working in your Roth IRAs and your hsas if you can set those on autopilot you will be amazed at how quickly your financial ship starts building and then we'll close this one out with I want to make the bad habits hard how do we do this is that one of the first things if money's in your pocket or money's just sitting in your bank account it's not accounted for it has a tendency just to slip out or kind of leak out as we like to say what other you do is to be very deliberate so I create a system called Force scarcity when you get pay raise is I want you to take the 60 40 challenge meaning that what you'll do is your after tax pay raise whatever comes out I want 60 to be allocated towards increasing your monthly Investments and then I want 40 to be left for lifestyle increases if you can do this you can practice this for scarcity it will allocate your money in a very healthy way I mean once again making the good habit very easy but it also restricts the leakage of your money because every dollar will have a purpose now we know that the 30s is a hard time so we talk about okay let's make wealth automatic let's make it inevitable but it's hard it's difficult this is the stage in life where we get pulled in a thousand different directions by a thousand different things and so one of the disciplines you have to master here is not letting short-term worry short-term obstacles short-term problems cause you to implement permanent solutions that will ultimately lead to permanent problems yeah I think because when we talk about short-term solution I mean short-term problems these are things like you're in the messy middle as you described where you're trying to figure out how do you pay for you know daycare for the kids you know or how do you save up for the car or even that first home purchase those are big heavy decisions but they're decisions that will only be something that you're struggling through for this short period of time what we don't want you to do is to create have a short-term problem that you put a permanent solution like lowering your monthly savings an investment plan or cash robbing out your you know pulling out of your your Roth IRA those type of things might seem like an easy solution of the time they can solve this problem but they actually are robbing yourself creating a permanent problem for your long-term Financial Health so you have to make sure you stay disciplined in doing that and you don't use artificial Bridges to try to cover that up you have to make sure that in your 30s if you really want to work towards millionaire status you need to be scared of debt now debt can be a tool and it can be something that you use and it can be something that you can utilize but just like a chainsaw if used in properly or used carelessly it can cut you off at the knees yeah I like I like using the chainsaw as a great example because I know we all can think about going to any type of scary house or haunted house where they're cranking up they take the chains off of course but they sit there and rev them up and you're scared to death when somebody comes around with a chainsaw if you are using debt and you're not scared you're using it wrong so that's why credit card debt let me tell you we are one of those financial channels where we actually don't have a problem with using credit cards because it would be wrong we eat our own cooking we actually practice what we preach we'd be Hypocrites if we told you don't use credit cards and then we're out there whipping out the plastic all the time so here's what we tell you credit card use is okay but credit card debt no way that's where that's where you've got to stay away if you're not paying it off every month you are blowing it because if you want to turn compounding interest from friend to foe don't pay off your credit card monthly how about this how about auto loans you know that here we love the 23 8 rule when it comes to buying a car we want you to put 20 down we don't want you to finance it for any more than 36 months or three years and all of your auto loan payments cannot exceed eight percent of your monthly gross income now that's true of normal cars if you're moving into luxury Brands if you're buying a BMW or Mercedes a brand like that we want you to pay it off in one year 23.8 does not apply and the most important part of auto loan purchasing is that you must make sure your monthly Investments the amount that you are putting in your investment accounts to grow for the future is greater than your car payment if you're saving 200 month and you have a thousand dollar car payment you are doing it wrong yeah you know what I love about these rules bows we also have some new deliverables on this you know with car buying as well as housing because that is the money guy rule the next one I want to talk about is housing and this one's a Hot Topic right now because interest rates are way up so this is even more important when you're making these decisions you do need to make sure this is a long-term decision we've got five to seven years meaning this is not something if you think you're going to change jobs be relocated or you're just not sure you want to maybe your wife situation with you know you're gonna get married or you're going to have additional children if you can't lock into this decision for five to seven years you're not doing it right we also want to make sure on house upgrades you're going to need like meaning you're you're living in a house currently but you want to upgrade to a nice rest that's a 20 down payment you that's pretty standard what I will tell you we're kind of unique on first time home purchases we're okay if you only have to put down three to five percent we give you a little Flex ability but then cash flow wise please keep your housing costs I'm talking about the principal and interest I'm talking about the property taxes and insurance try to keep those below 25 percent of your gross income income because we want you to be life rich not house rich life poor there's a there's a disconnect there and I know this is hard well the interest rates being as high as they are but it is one of those things where I think if you'll really work through this you will make sure that you leave enough margin in your life that you can own you know have housing but also live the life where you can save for the future and the more you can keep your keep yourself inside these guardrails and set yourself up for inevitable wealth in the 30s the more that yourself in your 40s and 50s and 60s well thank you so now let's talk about our millionaire math if you are someone who is in your 30s and you're just now figuring this out you're just now starting to save and you want to reach million dollar status by the time you get to 65 for a 30 year old you need to be saving 340 a month or you need to have already accumulated this point a little over forty three thousand dollars by the time you get to 35 if you're starting at zero you need to either start saving six hundred dollars a month or you have almost seventy nine thousand dollars saved up and by the time you get to the end of your 30s 39 years of age if you're just now starting out you need to save about 943 dollars a month to reach a millionaire status or you need to make sure that you've been saving you've accumulated at least one hundred and twenty two thousand dollars now I'm gonna go into extra credit territory here for the financial mutants I know that that 43 000 for the 30 year old the 79 000 for the 35 and the 123 000 for the 39 year old are what you have to have and not add a dollar to it to reach millionaire but a lot of you Financial mutants I would challenge you do a spot check see where you are based upon your age we did it in the content meeting you're right you yelled out another Brian are you with this so do the same thing for yourself I know that that has extra credit because this is just to get you in a million but we know we want to get you to two maybe even three million it's nothing wrong with going and doing a spot check and then challenging yourself to go even Beyond so if you're someone in your 30s you want to know where you are are you on track go to moneyguy.com resources download our free deliverable are you on track to be a millionaire if if you want to make sure that your friends are also on track send them a copy of it email them tell them to go down and say hey guys I'm on track to be Financial independent are you as well use this as a tool to spread the good news of sound financial decision making even in a decade when life is really really really difficult all right let's get to my favorite decade the 40-somethings this is the decade where look you've been at it for a while you know you you're no longer in your 20s or 30s those are Captain Obvious statements but here's what you need to know look at your GPS are you ahead of the curve are you behind the curve are you right where you're supposed to be you'll never know unless you take the opportunity to kind of look around and take a measurement and so one of the questions we get asked all the time is okay I hear you guys you say I need to know if I'm ahead or uh behind or on the curve how on Earth can I know where the curve is we actually built a course for you that you can use we call it the know your number course you can go learn about it at learn dot moneyguide.com where you can basically say okay if I want to have this standard of living and I want to make these inflation assumptions and these rate of return assumptions and I'm going to be saving this much this is how much I need to be able to live the life that I want to live when I want to live it on my terms well then you can play with this okay well what if I save a little bit more do I do it faster or what if I'm not on track how much more do I need to save to be able to do that so if you've not spot checked yourself if you've not done your GPS Test go to learn.moneyguy.com and check out the know your number course um this next one this this one sounds like a touchy feely or soft type gold and I know a lot of our audience is very analytical but it's very important you got to know your why and here's what I mean by this is in your 40s you know this is the decade of the middle life crisis this is all you know so a lot of people are going to realize they are behind or someone go realize they're ahead but this is also I want to challenge you this is the decade that your kids are probably getting close to the point that they might be leaving the Nets or at least going off to college so I'm going to challenge you to kind of focus on what's important what brings you happiness what do you truly enjoy in spending money on and then I want you to take a legacy memory Legacy challenge where you start thinking about hey I know I don't get to take this money with me but I do get to keep my memories and thoughts of trips and other special things I'm doing with my family take an inventory that make sure you know your why and all those things are lining up appropriately it's really interesting Brian you mentioned kids and we know that from Dr Stanley's book The Mayor next door millionaire next door he talks about one of the traits of millionaires is that their adult children are financially independent they're not counting on them for economic Outpatient Care well it's really really interesting when you think about the life cycle with which we get to spend time with our kids we spend a lot of time with our kids in our 30s and 40s as they're rearing or nearing adult age make sure that you're setting them up well for success make sure you're teaching them the things that they need to know so that when they do leave the house when they do get out on their own they're equipped to not continue to be a financial burden for you into the future well also I think is as we're looking at this point on knowing your why is that hopefully you are now you're not just working to pay the bills you're working with a purpose you you really are getting to allocate your resources your time the way you want to live your life yeah that's a great segue Brian are you making decisions now that will allow you to begin enjoying the fruits of your labor are you taking the thing serious now that you need to take serious so that yourself 20 years from now 30 years from now can still enjoy this I think Brian you had someone in your life who gave you some amazing advice I was in my mid to late 30s and I was in a small group um and it was actually I was in a small group with the pastor for my church and he was in his mid-40s at the time and he goes guys I gotta go and tell you um you know when you get in your 40s you can't take for granted that you can go run a quarter of a mile or half a mile or or do anything physical unless you're actively working and I'm now in my late 40s so I'm well beyond this but he was spot on as I've had to make a very heavy decision that I'm going to exercise I'm going to try to eat well because every decision you make now definitely has a physical impact on my body and I'm trying to create a legacy not only financially but also to make sure I can experience the fruit the memories that come with that so don't just take for granted that you're going to be healthy and everything's gonna work out actually take an active role in keeping your physical health good as well I've tried to I've tried to think about this and really drink this in right because I know it's not completely binary but I try to go through this litmus test of all the decisions I make whether it be around finances or health or anything else is is the decision right now I'm making going to help me or harm me in the future I'm either going to be moving towards my goals or moving further away from my goals and you can you can do this exercise when it's going out and drinking and parting on the weekends is that moving me towards my ultimate goals or away from it the way that I eat is it moving me towards my goals away from it the way that I make consumption decisions is it moving me towards my goals or away from them if you start focusing on this in your 40s I do think that you're 50 and 6 year old self is gonna be so thankful that you began making those live streams well I would challenge you look you go to counseling or anything they're going to talk about that inner voice that's inside your head while you're taking a shower sitting there talking to you I know I sound crazy but we all have it if you're if you're being honest with yourself do exactly what just said but go ahead and train that internal voice and say hey what when I wake up in the morning what small incremental decision today am I doing this going maximize not only today but that great big beautiful Lamar if you can think in those incremental terms and shape your your inner voice I think you'll be shocked at the movements you'll have in your life all right bro let's talk about the millionaire math in the 40s again remember the goal is if I'm in my 40s how do I tell if I'm on track to become a millionaire or if I want to keep saving how do I add Millions to that bucket and this is what's really interesting at age 40 if you've only accumulated 136 000 by 40 you have set yourself up to that 136 000 will likely turn into a million dollars by the time that you get to age 65. if you want to add another million to that start saving a thousand dollars a month at age 40 to add another million to that at 45 the sum you will need to have accumulated related by at age 45 to reach a million is 224 000 and then by the end of this decade age 49 if you want to make sure there's a 49 year old you're on track to millionaire status you need to have accumulated 322 thousand dollars by age 40. now look those numbers this is the part where it seemed very easy obviously 20 somethings it was almost like look if you just quit eating fast food and coffee you can be on your path to a millionaire with the cost savings when you're saving over a thousand dollars a month saving and investing over a thousand that's a lot of money so that's why I would encourage you a lot of you are coming into this and watching this content not at zero and that's what those numbers assume is you're starting at zero but there is going to be some hybrid approach where you take where you are currently with what you're saving and you need to kind of marry those and this is where I would encourage you in your 40s because you go ahead and push the accelerator to save more or if you're behind you know just make sure you're taking inventories back to that GPS please check out the know your number course to kind of accelerate and know exactly where you are in this savings process if you want to spot check just to give you a little quick back of the note at moneyguide.com resources are deliverable are you on track to be a millionaire and you can actually see at every age in your 40s 41 42 43 44 how much do I need to have saved and every year when you do your net worth statement you can see okay where am I at at this age am I on track am I where I need to be and allow that to keep you accountable to keep making great financial decisions Bo let's pivot and talked about people in the 50 plus era of their life this is um you know if we're talking about how to become a millionaire I I think at this stage you are very aware that Financial Independence is on the horizon so you need to go ahead and make sure you've been cleared to land the airplane of your financial life yeah have you started flipping that mentality and all of us like to think about financial Independence and we like to think about the thing that we're getting away from no more commute no more nine to five no more boss no more co-workers no more fill in the blank but if you really spent time thinking through what is this next phase actually going to look like how how am I going to spend my time if I'm not working eight hours a day five days a week what do I do at that time how am I going to fill it what are my hobbies going to be am I sure I'm even going to enjoy those Hobbies I'm amazed and all the people say hey you know what I'm gonna retire I'm gonna start playing all kinds of golf and I always say okay well great you play golf now no no never played around I'm like oh maybe you want to kind of test drive this a little bit to make sure it's actually something that you want to do so people say oh I want to travel I want to see the world well if you're on an international trip no no never done it oh maybe you want to make sure you actually understand what it is you're retiring to not just what you're retiring from well also everything you said there has a cost golf is not the cheapest thing in the world traveling it's not the cheapest so I want to make sure everybody is stress testing their plan to the life that they want to live and make sure you're actually in a good place with that we we do this for all of our clients you know we have several resources for you you could go know your number if you go to learn.moneyguy.com or you could get to the point because probably by your 50s you are getting to the point where the resources are getting close to seven figures it'd be nice if you could measure twice cut once because you're on your first retirement we've had many many retirements let us help you kind of stress test make sure you're on Solid ground with your process and plan now another thing in your 50s if you want to think about how to become a millionaire and how to stay in millionaire if you've done that is you got to have the awkward talks you got to have those talks that maybe aren't the most common comfortable in the world to think about and we think that this should go both ways you want to have the awkward talks with your kids around hey uh we're aging we're getting older these are our wishes this is our estate plan we've actually sat down and met with someone said hey this is what we want to have happen with us for the rest of our life and this is what we want to have happen to our money and if you are the child you have to have the awkward talk with your parents oh come on see boat now here's the thing I set this up to be a fun little thing because nobody wants to talk about death end of life all that transition so I tried because I actually resemble and getting close to these ages so I said hey when we said awkward talks I was picking and I was making fun of the fact that look when you have young children that are now turning you know you have to have the birds and the bees you have to have the the birds and the bees that's an awkward talk I was making a joke of the fact that you also besides that awkward talk you've got to have the awkward talk about you know what's the next stage of Life what are what do I have what are expectations you know what you know so make sure the communication is going back and forth way to play it solemn instead of giving me the edge to have a little fun so we could take the edge off of an awkward conversation well it's important because these are not easy conversations these are not fun conversations and it's it's difficult enough for us to think about having them with our children it's also difficult to think about having with our parents but they matter it's important to have those questions hey Mom Dad I'm not asking because I'm waiting for my inheritance hey what do you need from me have you thought about this had you made these plans have you been thinking through these things because the more well thought out the plan is both ways the more seamless and smooth the transition will be it's always so heartbreaking when we see someone says hey you know Mom and Dad they were so private they kept everything themselves and then something happened and it came out of nowhere we weren't expecting it and we have no idea what's going on you know you know Dad he knew the finances and he had everything figured out he was great with money but none of us have the road map none of us know what his great plan was that's a difficult thing for your loved ones to try to pick up the pieces on so if you can have those conversations you're likely going to set up your family and your heirs for better success long term yeah and not to keep the labor in the point but also if there's any awkward quirky things you're doing like if you if you have all the family heirlooms in a closet a jacket in the closet a winter coat that never gets worn please tell someone and then if you're if you're hiding hundreds of thousands of dollars and and the curtain rods in your house don't be doing it please tell someone about that too because I mean we've actually seen this type of stuff and that's why I would encourage you now look if this is if you're the 50 something and you have a parent that's in there there's their late 70s early 80s go ahead and have those conversations just like Bo said because we have seen those type of things too where if you're not questioning and asking things you can see some really quirky things that are going on later in life and then the other thing that you should recognize in your 50s if you really want to be a millionaire you want to be a true financially independent millionaire debt should be a memory it should be a thing in the past I mean you you should even be thinking through like if you have kids and they have student loans you know that should kind of be on them because it's yeah Brian what is it you always say you always say uh you cannot be financially independent if you are financially encumbered those two don't go together well I mean any type of debt is an obligation it's an encumbrance and you're trying to build Financial Independence how can you say you are independent if you actually have something that's encumbering that freedom so this is why I say you're not truly financially independent unless no one you don't owe anybody any money and that's where I struggle in this higher interest rate environment is because you know I want to have my house completely paid off but it's so hard with a two and a half percent mortgage rate so I'm I'm just I'm now keeping the cash reserves and then if Ray lights ever go back down below because I'm making like five percent on my cash I will be walking away from all of my debt and saying goodbye forever all right let's talk about our millionaire math because in the 50s this is merely spot check land so if you are 50 and you've accumulated at least 351 000 that would suggest that a conservative rate of return you are likely on your way to millionaire status by the time you get to 65. by 55 you ought to have accumulated about 523 000 and by 59 if your goal is to be a millionaire by 65 you need to have almost 700 000 saved up I still think that's incredible seven hundred thousand dollars saved up by 59 can still turn into a million by 65 just because you retire just because you're approaching retirement just because you cross that threshold into Financial Independence doesn't mean your money stops working your money can still work for you and it can work for you for the next 20 30 years it's just going to look a little bit different than what it was doing for your 20 and 30 year old this is an important thing and I would encourage I mean we do have some some free Resources with are you on track to be a millionaire you can go out to moneyguy.com resources but if you are in your 50s you're probably at the point I I mean we have or know your number course and Tool of course but I also think this is one you're probably really thinking where am I with this retirement can I land the airplane can a stress test consider taking the relationship to the next level because it would be worth it so you don't walk through this not knowing if this threshold is a healthy transition or if I really need to be playing catch-up and making some hard decisions being a millionaire is a fantastic goal now it's really nothing more than a number it's not anything special about being a millionaire but raising Financial Independence is a pretty exciting thing and while it is incredibly simple to do it it's not always easy so that's why we want to walk through at each age and each stage what are the big pieces of information you should hold on to what are the things you should remind yourself on a daily or weekly or monthly or annual basis to make sure that you keep your eye on the prize you keep your eyes on the goals you want to achieve and not let yourself get off track so here is a big takeaway I took from today's show we can only really keep up with three to four things so I would encourage you hey look if you haven't subscribed go ahead and hook us up right now also let us know down in the comments section what are some of the big three takeaways you took from this show and we just appreciate you guys being connected with us guys because we love creating content we love showing you the numbers we love kind of laying it out there so you can become the best version of yourself the financial mutant if you will with everything that comes your way as a financial resource I'm your host Brian Preston Mr Beau Hansen money God team out

Channel: The Money Guy Show

Views: 57,679

Keywords: money guy show, debt, budget, cash, real estate, insurance, how to make money, save, credit card, compound interest, buying house, buy stock, success, personal finance, How to Become a Millionaire By Age! (2023 Edition)

Id: DJu2LuHuexg

Length: 35min 59sec (2159 seconds)

Published: Fri Jun 23 2023