Literally The Easiest Way to Become a Millionaire

Save, Invest, Wait

Personal finance is a topic that I am passionate about. I am not trying to sell you anything with this post and it is not a teaser for some stupid seminar that I charge you money for later (never sign up for those).

I’m going to give you a simple route to become a millionaire with the math to support it.

Why? Because I find articles like “40% of Americans can’t cover a $400 emergency expense” sad and completely avoidable.

Almost anyone can become a millionaire; however most don’t. It requires just 3 simple things.

  1. You Must Save.
  2. You Must Invest.
  3. You Must Wait.

There is a bit of a “set-up” but I promise to get to the “answer” with the supporting math very shortly.

Step 1: Save

You must save. What if I told you that you could become a millionaire by just saving $25 a week?

Most people fail to save, even when they could. I’m not talking about folks who are really struggling paycheck to paycheck or even having to take out a payday loan. I am, however, talking about folks who could save a bit more each month by cutting the number of times they eat out or not buying clothes just to keep up with the fashion.

I think the biggest reason why people fail to save as diligently as they could is because they don’t believe it matters. They don’t think saving $10 here and there matters. We will take a look at the math later.

Saving $25 a week results in $25 x 52 week= $1,300 saved per year. Since the average household income in the US was $59,055 as of January 2018, saving $1,300 isn’t such a crazy stretch. If you are making below that or are currently single, then yes, you will have to work harder or give up a little bit more (coffee, eating out, new clothes, fancier car) to reach the $25 saved a week goal.

Savings tip: those who viewed their aggregated financial information an average of 12.47 times a month saw a decrease of 15.7% in their spending within the first four months.

Basically, the more you think about saving, the more you can save.

Step 2: Invest

You must invest. Most folks who don’t achieve their financial goals haven’t grokked the power of compound interest.

The long term average returns of just buying into the S&P500 Index Fund is 7–8% annually. Now that might not sound like much, but that increase is being added to your total portfolio value each year.

Just like with saving $25 a week, people don’t think investing and getting a 8% annual return makes a difference. But nothing could be further from the truth.

Recently, I have been using an app called Titan Invest, where they focus on investing in 20 high quality companies that they think will outperform the market in the long term. Their model, when backtested, returned 14% annually from 2004 to 2017, net of the 1% fee they charge. Their 2017 performance was 33% versus the S&P500 of 22%.

For the purpose of the math I’m about to show you, I assume a long term 12% annual return investing in a strategy like Titan.

Step 3: Wait

You must wait. This is NOT a get rich quick scheme. I didn’t promise this is the fastest way to become a millionaire, just the easiest way.

Now finally let’s look at the math and the “answer”. The answer is to save $25/week, invest that each week to a strategy like Titan, where you could compound your money at 12% on average, and do that for 40 years. If you start at age 25, and compound until age 65, you will have over $1,000,000. Older than 25? No problem, it just means you may have to invest a bit longer or save more aggressively. (If you start at age 35, you’ll have to save $50/week and invest until age 69 to reach $1M).

Here’s the financial model:

What do you notice about this model?

Yes, most of the money is made towards the end of the model i.e. when you get much older and into retirement age.

So there you have it. The reason most people won’t be millionaires is not because they didn’t have the earning power to. Anyone who makes a reasonable income or one that’s around the median for the U.S. has a decent shot at this, but:

  1. People may not believe that saving $25 a week matters.
  2. They don’t invest because they can’t see the impact of compound interest in the short term.
  3. People lack the patience to see the long term outcome to perform steps 1 and 2.

LINK TO MODEL

If you think you have no problem getting to the minimum savings requirement or have a more ambitious financial goal, just change the assumptions in the model for yourself.


I have no direct relationship with Titan, other than the fact that I use the app to invest, by making weekly contributions. Thanks to Clayton Gardner and the Titan team for building this product.

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