These are the 5 best tips to save $1 million dollars.
1. Track Everything
I use the free retirement planner in the Personal Capital app to track my investment portfolio progress and make adjustments. To the right is the projected glide path of my investments over the next 60+ years.
Sign up for the Free Net-Worth Tracker, Personal Capital, and start tracking your income, expenses, savings rate, and investing performance regularly.
I do it every morning, but you can do it as frequently as you like. Once you sign up they will even send you a weekly email to give you updates on your progress.
2. Make More Money
Try to make as much money as you can and invest as early as possible, so you can take advantage of the fuel of compounding, which is time. $1 invested at 25 is worth at least 2-3x than $1 invested at 35. The more money you can invest now the more it will grow.
If you haven’t asked your boss for a raise, then use this strategy to get a raise or get a new job. Start developing the best skills that lead to more money and make you more marketable.
If you already have really valuable skills launch a consulting company or start side hustling.
3. Invest More Money
Increase your savings rate 1% every 30 days, so you are saving at least 12% more each year. While that may seem like a ton, by escalating your savings rate 1% every 30 days, you aren’t likely going to feel it in your everyday finances.
If you are starting at a 10% savings rate, and you increase your savings rate 1% every 30 days, you will be saving 46% in 3 years! This will make a massive difference in how quickly you will save $1 million and how quickly you can retire.
Check out this calculator I built to see how quickly you can retire.
4. Keep At It
Don’t day trade stocks or look for the quick immediate return. The market will go up and down unexpectedly, but stick with it and keep investing as much as you can. The growth will continue to compound and accelerate over time.
5. Don’t Lose Sight of The Big Picture
Money is not the goal, time is. One of my biggest money mistakes I’ve made it valuing money above all else. While I am all about trying to make as much money as possible, just remember why you are doing it in the first place. Life > Money