Millionaire at 23

Millionaire at 23

Millionaire enquirer

It may surprise you how quickly you can accumulate a million dollars. Let’s help you determine the annual (and monthly) amount you would have to set aside each year to reach a million naira and reach your goal to be a millionaire.

Millionaire at 23!

Q: Dear Enquirer,


I am a 20-year-old trader and I currently have N180,000 in an investment vehicle that yields roughly 10 per cent. Kindly tell me what I need to do to grow my funds to N1 million in three years’ time. Thanks.

George, Alaba, Lagos.

A: Dear George,

Based on your existing investment of N180,000, it appears that you will need to further save and invest about N214,628 annually (or about N17,886 monthly) in order to become a millionaire by age 23 .
 
However, note that a million naira today will not be worth the same in 3 years. One million naira adjusted for inflation of 10% will be N1,210,000 in 3 years. You will need to save and invest N273,400 annually (or about N22,783 monthly) to reach that goal by age 23. Please see the table below for a calculation of the process.

 

Age

Beginning Balance

Savings @ 0.0%

Earnings

Taxes @ 10.0%

Ending Balance

20

N180,000

N214,628

N39,463

N3,946

N430,145

21

430,145

214,628

64,477

6,448

702,803

22

702,803

214,628

91,743

9,174

1,000,000

 

Courtesy: Yahoo! Personal Finance