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Welcome to the $1,000,000 blog.

My name is Dan and I am going to raise my net worth from practically zero to one million dollars. This is where I write about how I make, save and invest my money.


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The Million Dollar Blog is no longer active. All posts about my attempt to make a million dollars will appear on my new website: dmossop.zeeblo.com. Please update your bookmarks. Thanks.
 

Making big money from little savings

My last post was about making things last that little bit longer. I claimed that this would add up to big savings over time. But just how big?

I have read that the average amount earned by a university graduate over the course of their lifetime is about $2 million. This works out to about $66,666 per year.

If you manage to save an average of just 1% on everything you spend, you will save $666 per year. If you invested this and got a 6% return for the duration of your working life (call it 30 years), you would end up with about $55,800.

Are you prepared to squeeze your toothpaste tube a bit harder (or cut it open as Mandy suggests) for $55,800. I am.

Comments:
I don't know man $55,800 doesn't seem much for a lifetime. It'll worth nothing in 30 years.
 
$55,000 does sound low. I think the power of youth plus compound interest can add up to be a lot more cash than that.

But, great blog! Keep up the great work and interesting content. Visit my similar blog - http://www.missmoney.blogspot.com
 
When I calculate things like this I tend to be conservative with my estimates of interest rate, etc. If we take the same $667, invest it for 40 years at 10%, we'd end up with $325,000. And remember that that was by saving only 1% of your income. Make it 3% and you'll end up with close to a million. Sure, interest will eat into it a bit, but I'm pretty sure it will still be worth having.
 
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