How Much Do I Need to Save to Be a Millionaire in 5 Years

How Much Do I Need to Save to Be a Millionaire in 5 Years – If you’ve ever wondered how much you need to save to be a millionaire in 5 years, you’re in the right place. This post explains the important variables that affect this, so you can plan well ahead and maybe hit your target.

How much do you have to save part-time or full-time in order to become a millionaire in 5, 10 or 20 years? It’s a question many people are asking themselves. But the truth is, achieving millionaire status is becoming increasingly more obtainable if you have the right personal finance habits.

Becoming a millionaire in five years is an extremely aggressive goal, but it could happen. Although hitting a home run with an investment is what dreams are made of, the most realistic path is to put aside big chunks of money every year. The historical average return for the S&P 500 index is 8%. With that return, you’d have to invest $157,830 each year for five years in order to reach $1 million.

Account balanceCumulative amount investedEarnings per yearTotal earnings
Starting balance$157,830
After one year$170,456$157,830$12,626$12,626
After two years$354,549$315,660$26,263$38,889
After three years$553,370$473,490$40,991$79,880
After four years$768,096$631,320$56,896$136,776
After five years$1,000,000$789,150$74,074$210,850

Obviously investing almost $160,000 each year is not much of an option for the average American household, which makes $78,500 before taxes and living expenses. High-income earners are the most likely people to be able to invest this much on a regular basis. Their professions might include doctors, business owners, and corporate executives.

Just because you may not have a job making this much money doesn’t mean you can’t achieve the goal of having $1 million in five years. There are other ways to make a lot of money:

  • Become a real estate investor. Start with wholesale real estate to make quick money, then start buying your own properties to either rent or flip.
  • Start your own business. Business ownership can be risky, but the rewards can also be massive. There are a lot of small businesses you can start for $1,000 or less.
  • Work for a startup. Companies that are just starting out often give shares of stock to early employees instead of large salaries. If that company goes public or gets bought, your shares could be worth a lot of money.

Table of Contents

How to become a millionaire

Have goals

I will get my goals

You have to have short and long-term goals that help improve your personal finances. Otherwise, you could end up having trouble making ends meet, which would take you away from financial freedom.

Set goals that you know you can achieve and set a period to achieve them. 

When defining your goals, make sure they are specific enough and that you can measure them. So you will know when you have reached them.  

Once you have them clear, divide them into simpler and smaller objectives that you can pursue in the shortest term.

Write your goals on paper. This will make you more responsible and aware of your goals, and you will be more likely to achieve them.

And most importantly, celebrate when you reach your goals. You have to reward yourself! Take a break and do something you like. In this way, you will stay motivated and want to continue on the road.

Repeat your goals every morning so that you don’t forget them and keep them in mind in your decisions.


Perseverance in our goals

Perseverance is one of the most important millionaire habits. It is key to understanding how the rich think.

You’re going to have to work hard and put in a lot of extra time. Remember that if you are pursuing financial freedom, your workday does not end at five, you are going to have to work hard.

You will have to face great challenges, but whatever they are, perseverance will keep you working towards your goals.

Be patient, your ideas and projects may not materialize the first time. But it is essential that you are aware of your effort and that you do not give up.

Many businesses fail simply because people don’t insist enough and give up too soon. Learn from your failures and keep working.

Achieving financial freedom is not a sprint but a marathon. Be disciplined and focus on your long-term goals.

Success comes from hard work and not from how smart you are or the money you start with. If you are persistent and constant, you will achieve your goals.

Learn to make decisions

Whether it is investing in the markets or starting a business, you will have to make decisions. And although it may seem scary at first, it is a matter of practice.

When making decisions, it is important that you consider all possible scenarios, that you remain calm, and that you are quick, in this way, you will not miss the opportunities.

As Theodore Roosevelt said:

“In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.”

Get as much information as possible and list all your options, then think about the consequences of each of them and make the decision that you consider best.

It is very likely that you will make some mistakes at first, but do not worry, you will learn from them, and in the long run, they will end up bearing fruit.

You will also have to learn to say no to people and situations, so you will better manage your time and avoid making bad decisions. Always keep your goals in mind, so you will know how to set priorities.

If you are not sure which way to go, feel free to ask questions. It is the only way to find the necessary answers with which to make the correct decisions.

Contact experts if necessary for advice and suggestions to solve your problems or questions.

Always have a contingency plan in case things don’t go the way you expect. In this way, you will feel more confident and sure of your decisions.

If you want to think like a rich man, you must learn to follow your instincts at all times.

Create value.

Millionaires think money chases value and as long as they are creating value for other people, money will chase them.

So, they create something valuable that other people can use in exchange of money.

It helps them to generate wealth and become wealthy.

When you bring value to the marketplace, people would love to give you money in exchange of value you provide.

Make sure, it’s something that people need and want to purchase from you.

Have a routine

Have a routine to get your goals

It is key that you create a plan and a routine that help you achieve your goals.

I recommend that you get up early and take advantage of the morning. According to surveys, 50% of self-made millionaires get up three hours before their workday begins. 

The percentages are even higher among successful executives.

It is the best time of day, people are sleeping, you will not have interruptions, and you can improve your productivity.

Exercise, meditate, learn something new, read, work on your business plan … Do what you want, but let it be something that makes you grow as a person and get a little closer to financial freedom.

By the time everyone gets up, you’ll have been working on your future for a long time. 

Whatever routine you do, stick to it, in this way, you will work a little each day to build your goals. Over time, you will also develop willpower, which is one of the most important qualities for achieving results.

Remember to enjoy the road as much as the goal.

Network is your net worth.

Millionaires believe that your network is your net worth. They meet with new people everyday and build stronger network.

It helps them to create more wealth by creating more business opportunities.

They are great communicator who knows how to win people and create influence around them.

Be frugal

Frugality is based on spending your money wisely.

Be careful with your money, take care of every last cent. That does not mean the same as buying the cheapest. Buy quality products or services at the best possible price.

Do not settle for something that does not serve only to save a few euros. Find a product that solves your problem. And if you can’t find it, you already have a business idea. 

As Catherine Pulsifer said:

“Being frugal does not mean being cheap! It means being economical and avoiding waste.”

Don’t be impulsive, don’t spend on things you don’t need. Learn to distinguish between things you need and things you want. Don’t buy a new car every three years!

Live within your means, spend less than you earn, and do not buy things on credit. Do not go into debt unless it is to generate value.

You will have to find the balance between living a consumer life and walking the path to financial freedom.

Remember that it is easier to create wealth the more money you have available. And if you spend all your money, you will not have the necessary capital to invest.

If you want to lead a more frugal life, don’t forget to read this article.

Have a future mindset

Have a future mindset

When you set your goals, you don’t have to focus only on simple things that you can easily achieve, but you have to have a much longer-term vision.

Think about where you would like to be in 5, 10, or 20 years.  Although now these goals may seem unattainable as you advance on your way, they will seem more affordable.

Don’t get stuck in the past, learn from the mistakes you made and focus on the future.

Don’t think that everything was better before. Because it is not true, today you have at your disposal many tools such as computers or mobile phones.

Currently, you have many facilities to start a business, since with the internet you have access to everyone.

Focus on your goals and your plan. You should think about where you are going to be in a year, and not what you were doing last year. 

Visualize yourself reaching your goals, achieving financial freedom.

Invest in yourself

Read books and articles, take online courses, listen to podcasts on the way to the office … No matter what you decide to do, the important thing is that you don’t stop learning and developing new skills.

Improve your knowledge of finance, business, and investments, among others. In time you will know so much that people will come to you for advice.

Spend as much time as you can observing and trying to understand the world around you. Try to know yourself.

As Roy T. Bennett said in the book The Light in the Heart:

“There is no more profitable investment than investing in yourself. It is the best investment you can make; you can never go wrong with it. It is the true way to improve yourself to be the best version of you and lets you be able to best serve those around you.”

Don’t hesitate to seek help from people who know more than you. Expand your horizons, connect with other people and develop new points of view.

Remember that no matter how many degrees, master’s, or experience you have, there will always be something new to learn.

Develop the habit of reading and read 30 minutes a day so you will learn things that will help you improve your life, your business, or yourself. Don’t be afraid to learn something new.

Keep in mind that growing continuously is one of the most transcendental millionaire habits. That is why I recommend that you read this article about the best ways to invest in yourself.

Think positive

keep thinking positive

You have to maintain a positive mindset because if you don’t, it will end up taking a toll on the money you earn, on your energy levels, on your health … and especially on your happiness and success.

The rich always think optimistic about money, and you have to do the same. In this way, you will attract more opportunities, and more doors will open to you. Money is just one tool that will allow you to achieve financial freedom and happiness.

Money is important in life, as it will help you improve other important aspects such as your health or your personal relationships

Don’t start looking for excuses why you aren’t rich. Do not blame society, your environment, family, friends … Do not envy people who have money and see them as greedy and arrogant people.

Don’t stress about money. You don’t have to see money as a bad thing. It is only a means to an end.  You should not be afraid of your money, learn to control and invest it.

If you don’t learn to control your money, then he will end up controlling you. And if you don’t invest it, it won’t grow, and you may not be able to achieve your financial goals.

Make your money work for you! Remember that every euro that falls into your hands is an opportunity offered to you to multiply it and win even more.

Always think positively, especially about money.

Be rational

make logical decisions

Make logical decisions based on data and fact, rather than emotional decisions based on feelings.

Do not include negative emotions such as envy or hatred in your decision-making process, as they will hinder your path to financial freedom and also make you unhappy.

So think like a rich man, stay positive, and don’t let your emotions take over.

Focus on the opportunities rather than the obstacles. Do not base your decisions on what is easiest or comfortable for you, but on what will help you achieve your long-term goals.

You have to get out of your comfort zone because outside is the only place where you will really grow as a person. Challenge yourself!

It is outside of your comfort zone where you will have the opportunity to find the greatest growing chances, meet more people, learn new ways to generate income, discover new investment strategies, and ultimately you will accumulate wealth faster.

If you want to become a millionaire, you must think like a rich man, that is, you will have to overcome feelings and emotions such as laziness or envy and start making rational decisions.

Invest in assets.

Millionaires think assets are the best way to produce more and more money. They put all the money into assets like, real estates, business, stock, bonds that produces cash flow and help them to get rich.

Here’s something you need to know,

Liability takes money away from your pocket.

Assets brings money into your pocket.

When you put money into asset, your money grows. And when your money grows, you get richer.

This is how you can get rich and wealthy.

Take care of your physique

Take care of your physique

Although it may seem irrelevant, exercising is one of the most prominent millionaire habits.

Exercising will help you stay healthy and positive, which will show in your performance and productivity.

Physical activity will help you release endorphins and reduce stress. You will think more positively and look more optimistic.

Eat a healthy diet. Take only the calories you need. Try to avoid fast-food restaurants, eat fruits and vegetables, drink plenty of water, don’t drink too much alcohol, don’t smoke.

Well, you know what I’m talking about. 

Remember to get enough hours of sleep so you will be rested and more efficient.

Collaboration and teamwork

Surround yourself with successful people who have the qualities and skills that you need. 

If you do, they will compliment you by covering your weaknesses. They will help you meet your goals and guide you to your final destination.

If you cooperate with each other by sharing ideas and resources, learning from each other, or working together, you will create synergies that will make you stronger.

Take advantage of any opportunity you have to be with people you want to be like.  

As Henry Ford said:

“Coming together is the beginning. Keeping together is progress. Working together is success.”

Try to work and collaborate with them in any way you can. This will help you learn new skills.

Be optimistic and honest with people. In this way, you will be able to build lasting relationships based on trust. This will allow you to open doors to new opportunities.

Don’t think twice if you are offered the opportunity to associate with people who have already arrived or are going where you want to go. And leave behind negative people who do not add value to you.

You won’t reach your full potential without help, so make sure you build a good contact list and find mentors to teach you all of the areas you need to improve to be successful.

If you know how the rich think, it will not be difficult for you to identify people who follow millionaires’ habits and who are willing to collaborate with you.

Never buy liability.

Millionaires will never buy liability. They believe that liability will take their money away.

When most people are buying stuffs like, cars, houses, expensive watches and expensive smartphones.

Millionaires never buy cars, houses, and expensive stuffs before they get rich.

It’s all about taking care of your money and using it right.

Once you have more than enough of money, you can buy anything you want. But you need to do this in the early stage.

Think big

Think Big and far

Don’t be afraid to think big, if you don’t, you won’t get big wins.

Do not think where you think you will be or where you could be, but where you would like to go. 

Do not consider where you are now, only where you would like to be if there were no other conditions.

Don’t settle for having your salary raised by 2% every year. Think about starting your own business, having a thousand clients, or billing 10 million.

For example, find a problem and then work on a solution that can improve your future clients’ lives. So you will be a successful entrepreneur.

Believe in yourself, you write your own destiny.  

You will achieve your goals through your work and not by luck. If you commit yourself to developing millionaire habits and thinking like the rich, then your chances of having a lot of money will increase substantially.

Poverty is the root of all evil.

Most people knows that money is the root of all evil but millionaires think poverty is the root of all evil. They believe that money doesn’t make someone evil but poverty does.

Lack of money creates more evil than abundance of money.

They are constantly making an impact in other people’s lives with the help of money.

So, money is the root of greatness and it solves big problems in people’s lives.

Take risks

If you want to accumulate wealth, you will have to be willing to work hard and do whatever it takes to achieve it.

Although it may be that before making important decisions, you have feardoubts, or concerns; you’re going to have to overcome and take risks.

As Goethe said:

“Whatever you can do, or dream you can, begin it. Boldness has genius, power and magic in it.”

When you take risks, make sure that the benefits of success are going to be greater than the costs of failure and that the chances of success are as high as possible.

To do this, make sure that you have calculated the risks well and know your actions’ consequences. Take risks if you know the result will be worth it.


The only way to succeed in life is to do things with passion. If you do something reluctantly, you are not going to do it right.

For example, you may have ever had a job that you did not like or make you happy. Maybe you still have it. You sure did it for money and without any passion

It is likely that you spent the day waiting for 5 in the afternoon to arrive so you could go home.

You must remember that when you worked you did not give your best and consequently your performance was not very high. Maybe that’s why you didn’t get promotions or salary increases.

Don’t work for money, work on your passions. 

Having passion and confidence in yourself will help you overcome difficulties, and in time you will achieve your goals.

Decide what you want to do based on your passions, this way, you will work with enthusiasm and effort. You will work to your maximum potential, which will allow you to reach financial freedom.

Take action!

Take Action

It is important to have goals and a good plan to achieve them, but you will not get anywhere if you do not act. You always have to take the first step, and I know that will be the hardest.

One of the most characteristic factors in how the rich think is the fact that they are people of action

In other words, they do not dedicate themselves to thinking and analyzing a situation indefinitely until the opportunity has disappeared. On the contrary, they make quick decisions and take action.

Start slow, develop your habits and willpower with small actions. Then move on to bigger and more challenging activities and goals.

For example, if you want to get in shape, you will probably start by going for a run a couple of times a week. You will run 20 minutes or rather you will walk fast. 

But over time, after effort and perseverance, you will end up running faster and going further than you would have ever thought possible.

But all this would not have been possible if you had not decided to go for a run that first time.

With financial freedom, it is the same. You have to make the decision to do small jobs, watch your expenses more, or make small investments. 

To then be able to create a business, follow a budget or control your investment portfolio.

By the time you realize it, you’ll be halfway there. Remember that the sooner you start, the sooner you will reach financial freedom.

Don’t wait for things to happen, the chances of becoming a millionaire by winning the lottery are very low. 

Instead, think like the rich, be smart and fast. When you see good opportunities, go for them without thinking twice.

It is not just about reading but about acting. This is how do millionaires think.

Learn to Earn.

Millionaires are people with great learning ability. They learn new things everyday because they know “the more you learn, the more you will earn”.

They are smarter than other people because they engage themselves with great business books, self improvement books, mentors and successful people.

Millionaires keep upgrading their mindset with new information that helps them generate more wealth.

If you want to become a millionaire, start learning to earn like a millionaire.


Who said that only the 1% can become millionaires? Absolutely no one, but it is tricky not to think like that. The majority of the world population could be happy if they had enough money to pay for basic needs. But there’s always someone who wants more, who demands more, because they believe they can get it.

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