Become a Millionaire for Only $158.15/month

That's only $5.20 per day, less than the cost of a Starbucks latte.

No, this is not a scam.  Yes, it is possible with two assumptions.   First, the investment has average returns of 10% per year.   Second, the investment is held for 40 years, with all dividends and interest reinvested.  

The annual return is achievable since the S&P index has returned about 11% per year on average over the long term.  If one takes less risk with a 60/40 diversification of stocks and bonds, the return is about 7% a year and more funds need to be invested to reach $1M in 40 years.  If one takes even less risks and invest in CDs/Bonds for a 4%, significantly more funds are need.

	Invest to Become a Millionaire
Monthly (Daily) Contribution	Average Yearly Return	Total Paid	After 40 Years
$158.15 ($5.20)	10%	$75,912	$1,001,083
$381.00 ($12.53)	7%	$182,880	$1,000,053
$846.10 ($27.81)	4%	$405,150	$1,000,872

OK, what if one can only afford $158.15 a month.  The table below shows the impact on average annual returns on the number of years to reach a $1M.

	Invest to Become a Millionaire
Monthly (Daily) Contribution	Average Yearly Return	Total Paid	Years to Reach $1,000,000
$158.15 ($5.20)	10%	$75,912	40
$158.15 ($5.20)	7%	$182,880	52.1
$158.15 ($5.20)	4%	$405,150	77.5

OK, what if one can afford more than $158.20 a month.  The table shows the impact on contribution amount on the number of years to reach $1M.

	Invest to Become a Millionaire
Monthly (Daily) Contribution	Average Yearly Return	Total Paid	Years to Reach $1,000,000
$158.15 ($5.20)	10%	$75,912	40
$263.40 ($8.66)	10%	$110,628	35
$442.41 ($14.55)	10%	$159,300	30

Here's what I'm doing to enable my children to be millionaires on their own.  For my children's Roth IRAs, I'm investing or will invest $159 per month.   For the initial investment, I put $159 into 4 mutual funds/ETFs from Schwab: ETFs - SCHB (Total Market), SCHG (Large Cap Growth); Mutual Funds-SWPPX (S&P 500), SWLGX (Large Cap Growth).   I will monitor returns over the next few months and narrow down to one or two investment options for the future.  Also, based on the analysis above, I will increase the amount contributed when the market declines.

At this point, I am leaning towards the mutual funds, since I can invest an exact dollar amount of $159 each time, whereas I am required to invest in whole shares for the ETFs.

Disclosure: I am not compensated by Schwab for any mentions made in this post.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial, saving, investing nor millionaire advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC