# Sounds impossible? It is not and in fact very practical. You don’t need a jackpot to reach \$1Mn Goal.

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2 years ago | 2 min read

Sounds impossible? It is not and in fact very practical. You don’t need a jackpot to reach \$1Mn Goal. All you need to do is to consistently invest \$50 a day (or \$1500 a month / \$18000 a year) and let your money grow with compounding effects. I will explain this using this table below:

There are 4 columns here:

• Capital Invested Annually: This is the amount you need to invest every year, which is equivalent to \$50 a day
• Years remaining for Retirement: This is the period of remaining time for which your invested money will grow
• Annual Return: This is the rate at which your money needs to grow annually. This is achievable even with passive investing in something like S&P 500 Index. If you look at S&P Index from 1996 to 2021 (last 25 years), the index has grown at ~8% annually on an average (though each year is not exactly the same 8%)
• Value at retirement: This is the corpus amount which your investment of that year will give you after the remaining number of years for retirement.

Note that this is just for illustration purpose, and your actual rate of return might be (and in high probability will be) different than the uniform rate of 8%. However, in the long term (looking at historical evidence), we can say that on an average it should grow in a similar range.

Now let’s do some maths on how an average person can save that \$50 a day (or \$1500 a month). If we take the example of US, average disposable income in US is \$34,103 annually (Source: Wikipedia).

This is equivalent to \$2833 a month. In order to save \$1500 a month, one needs to manage the expenses in ~\$1300 a month. This might be a tough task, esp. for people with families and living in some of the expensive cities. At the same time, if you start investing early before you have a family (and assuming your salary grows over time when you have a family), this is still manageable.

So imagine you start investing from the day you start earning. If you started working at 22, then dream of retiring at 45 is quite achievable!

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I am a business person with strong consulting, sales and operations background, and high affection for technology. I also provide advice / consulting to small / startup companies on request.

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