How to become a Millionaire with the 10 YEAR PLAN

today i'm going to talk about how to become a millionaire on the 10-year plan so we're going to take what you would have saved over your entire working life and we're going to shrink that down to just 10 years this is going to take a ton of work a ton of focus and a ton of dedication but at the end of the 10 years you're not gonna have to save anything else and you're gonna have a ton more money in retirement so let's go ahead and jump in i'm gonna show you what this looks like so here's our first chart and i'm gonna walk you through all these numbers so you can really understand the impact this is gonna have on your total total life so day one we're gonna have a saver that's gonna save three percent and they're gonna get a three percent match on a hundred and twenty thousand dollar income that's where the math is coming from but it doesn't matter how much you earn it's what you save and i'm going to show you what i'm talking about here so day one we're saving 7 200 per year i don't have this invested in this chart so this is only the amount that we're contributing into the plan including the three percent match so we'll call it six percent so the total amount contributed to the plans overall working life in this example is going to be 396 thousand nine hundred and eighty six dollars again this isn't invested i just want to give you a baseline so when we go ahead and flip it over into other numbers you can kind of see what we're comparing it to so just under 400 000 if we take that and invest it then it's gonna jump to just under two and a half million dollars 2.4 million dollars this is a normal retirement plan so now let's take that amount saved just under 400 000 divided by 10 and save it under save it over a 10-year period and that should be exactly the same amount right so in 10 years we're going to have saved 396 980 roughly the same just a little bit of a rounding error there so if we take that same amount and invest it the same way over the same time frame but we're making those contributions much much faster then let's take a look at what it looks like so that's gonna jump quite a bit to 6.8 million dollars that's a huge jump but we didn't save any more we just saved it earlier obviously a massive sacrifice but that's pretty motivating to get that much more in retirement just because we saved it earlier now i also wanted to run a plan where we looked at the absolute worst 30-year period in the last hundred years and that was 8.6 so 8.6 percent on an annualized compound rate of return and that brings it down to still for just over 4.6 million dollars when the original plan showed just under 2.5 million dollars so still kind of nice really motivating to save earlier rather than over the entire working life so still massive sacrifice in order to do that now if we did the same plan we were saving in a 10 year period but we're bringing it down to say hey what can i do to save in the same exact scenario to save a lot less but still get to the goal well if we did that that would be 13 750 per year and that would still give us 2.3 million dollars so a little bit less but we only save for 10 years even though we saved a lot more on an annual basis in that first 10 years it's significantly less than our second plan where we're saving that 40 000 or just under 40 000 per year so a massive difference in how we're saving not just the amount that we're saving but when we're making those contributions now i'm not expecting a ton of comments saying sign me up for this plan i'm willing to make all these sacrifices but hopefully you see the value in working smarter not harder and if anything this type of a plan not only forces you to be frugal but that frugalness probably would carry through with you for the rest of your life so that's only going to benefit you financially over the course of your life so let me know what you think in the comments down below and if you've enjoyed this video be sure to subscribe and we'll see on the next one

Channel: Travis Sickle

Views: 2,127

Keywords: travis sickle, how to become a millionaire, become a millionaire in 10 years, how to become a millionaire in 10 years, financial freedom, fire movement, fire movement retirement, fire movement investment strategy, fire movement 2022, retirement planning, how to save money

Id: mN89wnCgMvc

Length: 4min 7sec (247 seconds)

Published: Mon Aug 08 2022