If You're 25, You Can Become A Millionaire With $500/Month

Question 1: How much do I need to save?

Someone who's almost 25 asked me how much they should be investing each month to become a millionaire at 55. I was ecstatic to share with them all they would need to invest is $500 a month (more around $450 per month) at 10%, which is a measly amount compared to what most people need to invest since they start saving retirement in their 30s, 40s, and 50s, or later.

50% of adults 18-34 are not saving for retirement at all, compared to 42% of adults aged 35-44, and 40% aged 45-64 (CNBC).

Get this, if you invested just $215 at 10% starting from the age of 18 to 55, you'd be a millionaire. Saving $2,000 a month at 10% from 18 to 55 will put you in the mega-millionaire bracket.

Here's the thing, the sooner you start saving, the less you have to put away each month, which will relinquish the requirement for you to earn more income than you need to or work longer than you desire. Everyone is working longer into later years for three reasons:

We're living longer (fortunate)

We're getting bored doing nothing in retirement (fortunate)

We didn't save enough for retirement, so we have to work (unfortunate)

Imagine only having to save a couple of hundred bucks a month to be a millionaire…

Maybe you're not in your 20s or teens anymore, but there's no better time to start investing than now. Don't allow tardiness to deter you from getting started if you haven't started investing already.

Question 2: Do I need a financial advisor?

No. I've had a financial advisor, and I've also done it myself. Many fantastic and savvy financial advisors exist, but you don't need one if you're doing basic retirement investing. Save on the fees, and use robo-investing apps that do all the calculations for you based on your age, retirement goals, investment tolerance, and income.

Ultimately, financial advisors will make decisions with their interests and the following question in the back of their minds: What will, in the end, make me the most money? The way financial advisors make money off you varies, but some of the ways they do this include:

Fees (hidden and visible)

Re-allocating your investments frequently, aka switching gears or strategies often to help you make more money

Here's the thing: never leave decisions about your money up to a financial advisor. Do your research and educate yourself, so you're in the know. Ignorance isn't bliss. Ignorance is missed opportunities and oversight (sometimes expensive ones).

Question 3: How do I invest for a house?

Eventually, this person wants to buy a house, and their thinking is right on point. They are already prepared to invest instead of putting their money in a savings account to burn.

If you're looking to save for a house, the best way to do this is to invest your money; this will help you build a sizable down payment and house emergency fund for when you buy your first home.

When you have money to blow, a house is a reasonable investment and can work in your favor - especially if you're looking to get into physical real estate, which I believe this person might be. You can put your equity to work by investing in another starter home to rent out.

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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.