How investing $33 a day could make you a millionaire by retirement

USA Today

22-06-2025

Most of us would love to be a millionaire, and many of us think, often correctly, that if we want to have a comfortable retirement, we'd better be a millionaire by the time we retire. (For many others, $1 million isn't enough -- much depends on where you live and how you live.)
Here's a look at how you might become a millionaire by retirement by saving and investing just $33 per day.
How $33 per day can get you to $1 million − or more
An article like this can be very eye-opening and instructive, but it's hard to offer one table that applies equally well to everyone. Let's start with the table − and I'll add a lot of caveats and considerations after it.
Investing $12,000 Annually for:
Growing at 8% Annually
Growing at 10% Annually
Growing at 12% Annually
Five years
$76,032
$80,587
$85,382
10 years
$187,746
$210,374
$235,855
15 years
$351,892
$419,397
$501,039
20 years
$593,076
$756,030
$968,385
25 years
$947,452
$1,298,181
$1,792,007
30 years
$1,468,150
$2,171,321
$3,243,511
35 years
$2,233,226
$3,577,522
$5,801,557
40 years
$3,357,372
$5,842,222
$10,309,707
I used several growth rates in that table, because the stock market can be somewhat unpredictable. Over many decades, the stock market has averaged annual returns of close to 10%. But over your investing period, it might average more -- or less.
So for best results, go ahead and aim and hope for high returns, but prepare for lower ones, just in case.
How much per day do you need to save and invest?
You'll notice that per the table, it may take you 20 or 25 years to become a millionaire, saving and investing $33 per day, on average. That might not be good enough, if you're, say, 55 years old already.
So check out the table, detailing how much you need to save to retire with $1 million -- if you want to retire at 65 and your money grows at 8% annually:
Starting Age
Monthly Savings Needed
Daily Savings Needed
25
$325
$11
30
$485
$16
35
$740
$24
40
$1,140
$37
45
$1,825
$60
50
$3,070
$101
55
$5,760
$189
How should you invest your money?
So now that you have a rough idea of how much you should be saving and investing, how should you be investing? Well, arguably the simplest, most effective strategy is just to invest in a low-fee, broad-market index fund, such as one that tracks the S&P 500.
Since the S&P 500 has averaged annual returns close to 10% (ignoring inflation) over long periods, you have a fighting chance over your investment period to achieve an average annual gain of perhaps 8% or 10% − or possibly more.
Index funds make investing easy, with an S&P 500 index fund, for example, such as the Vanguard S&P 500 ETF, instantly plunking you into 500 of America's biggest companies.
If you can stomach some more risk, though, perhaps park some of your dollars in some fast-growing ETFs − though they can be more volatile.
However you do it, be sure that you have a solid retirement plan and that you're sticking with it, saving and investing for a comfortable future.
Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
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