Millionaire in 10 years

Millionaire in 10 years


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 in 10 years

Q: Dear enquirer

I am currently 35 years old and would like to become a millionaire at age 45. I currently have only N10,000 in an investment. What do I need to do to achieve my aim in terms of further savings and investment?

Joe, Lagos.

 

A: Dear Joe,

Based on your existing investment of N10,000, it appears that you will need to further save and invest about N58,956 annually (or about N4,913 monthly) assuming your investment gets 10 per cent returns per annum in order to become a millionaire by age 45 .
 
However, note that a million naira today will not be worth the same in 10 years. One million naira adjusted for inflation of 10% will be N2,357,948 in 10 years. You will need to save and invest N140,956 annually (or about N11,746 monthly) to reach that goal by age 45. Please see the table below for a calculation of the process.

 

Age

Beginning Balance

Savings @ 0.0%

Earnings

Taxes @ 10.0%

Ending Balance

35

N10,000

N58,956

N6,896

N690

N75,162

36

75,162

58,956

13,412

1,341

146,188

37

146,188

58,956

20,514

2,051

223,607

38

223,607

58,956

28,256

2,826

307,994

39

307,994

58,956

36,695

3,669

399,975

40

399,975

58,956

45,893

4,589

500,235

41

500,235

58,956

55,919

5,592

609,518

42

609,518

58,956

66,847

6,685

728,636

43

728,636

58,956

78,759

7,876

858,475

44

858,475

58,956

91,743

9,174

1,000,000

 

 

Courtesy: Yahoo! Personal Finance