You Want to Be a Millionaire? This is How Much You Should Invest…

Photo by Austin Distel on Unsplash

Everyone wants to be a millionaire. But do you have what it takes to become one?

Yeah, you do actually. All you need is a little extra dough on the side each month and a little know-how (which I’m about to reveal to you) if you want to be “rich” by the time you retire. Even for those of you who are getting up there in age… It’s not too late to start investing and earning a little extra money in passive income.

This can be done, quite simply, through index funds. As long as you’re smart about it (and know how much and when to invest), you can secure your retirement.

So let’s talk about how much you need to invest in index funds if you want to be a millionaire…

Let’s say you’re 25…

Some index funds have a yield that amounts to 3% annual returns. In this case, for those of you on the butt-end of Generation Y, you’ll need to invest around $1100 a month for the next 40 years in order to hit your goal.

For 6% annual returns, you’ll need to invest about $530 a month, and for 9%, you’ll need to invest $240 a month.

Find the index fund that is right for you — there are plenty to choose from, but choose right away because that’s still a hefty chunk of change for the next 40 years. Don’t just…