Save $1 Million


Who Wants To Be A Millionaire?

In my opinion a million dollar net worth or retirement account is still an amazing and worthy goal. Many financial experts say we will need at least this to secure a comfortable retirement. Keep in mind there are many contributing factors. For example: age at retirement, pensions, social security, other assets, other passive income, part time work, etc.

Easy Math To A Million

Here is a fun Money Viking cartoon on how much to save each month to reach $1 million. For example, if you want to accumulate a one million dollar nest egg in 30 years, simply save $481/per month and earn an average 10% annual return. If you want to speed the process up then one can save more per month. I think the old adage about the first million is still true. That is the hardest part is getting to that net worth mark. I think once a person has reached this milestone the habits and practices that got them there will carry the day. In addition, the money will start earning extreme compound interest.

401K or IRA Automatic Wealth Building Robot!

The first step to a million is usually the company 401k. Max out and get the match every two weeks. This is probably the most important wealth building tool to deploy. Most wealth for most people will be deployed in this manner from now and into the future. This is the main tool I used to use the wealth building TRIFECTA and triple net worth in 10 years. We all know pensions are a relic of the past and not really sure what the future holds for social security. Probably some kind of drastically reduced benefit because our “leaders” (I use that term loosely) have failed to prepare and plan for the future in exchange for immediate political gain. Speaking of the future, consider utilizing a Roth IRA wealth building robot in order to save money on future taxes. In the cool future we can all share, your money can be withdrawn from the Roth tax free! The big thing about using the 401k “robot” is getting to what we call here at The Money Vikings as the point of “critical mass”. Others call it the wealth “snowball” effect! The amount grows so large that it starts compounding on itself and growing at faster and larger amounts. At this point, each dollar invested becomes it’s own “robot” wealth building solider on your team. Each dollar invested is now making more dollars that reinvest on themselves. This can all happen by letting the capital work over long periods of time.

Do you DRIP?

DRIP stands for Dividend Re-Investment Program. This is basically when the dividend payment is automatically reinvested to buy more shares, which in turn produce more income and cash flow. One can have the dividends automatically reinvested, therefore buying more dividend producing stocks. This essentially amplifies the power of compounding! I do this with a Real Estate Investment Trust called Realty Income, ticker symbol “O”, which actually pays monthly. One of their slogans is “The Monthly Dividend Company”. At some point you may have enough of these assets to produce significant income each year without touching the principal. Caution though, it does take quite a few shares to generate substantial income, but this can be one aspect of your battle plan to conquer financial freedom. Put this together with other sources of income to support your life. But again, one nice thing about dividend producing stocks is that almost anyone can start building a portfolio today and add to it over time.

A good analogy for dividend stocks is planting a fruit tree. You plant the tree and feed it over time. At some point it just continues to produce fruit for you to consume without cutting down the tree. In fact, this is a great metaphor for any passive income machine you may set up. One thing I like about building a portfolio of dividend stocks is seeing the immediate progress each month. It satisfies that need for instant gratification as you add more shares and see the dividend come in each quarter.

For many years I have had $50/month taken directly out of my paycheck every two weeks and placed in a dividend producing stock. I have also had the dividend income reinvested by purchasing more stock. A general rule of thumb is that if you invested $30,000 in a dividend stock that produces a 3% yield, then you will earn $1,000/year in income. Regularly investing in a Dividend Reinvestment Plan (DRIP), in a few years you can amass a sizable amount in income producing dividend stocks. During our working years it may be best to have the dividends reinvested in order to acquire a larger number of shares. Therefore, when one approaches retirement perhaps they have $60,000 in dividend producing stock that provides $2,000/year in income. That could cover a good portion of your yearly grocery bill! Dividend stock investing can be a powerful force over time. In conclusion, if the dividends are reinvested and combined with the magic of compounding, one can build some substantial wealth. In fact, 91% of Warren Buffett’s portfolio is invested in dividend paying stocks.


$16/day could be your ticket to a million dollars. As illustrated in our Money Viking cartoon, just $16 or $481/month becomes a million over 30 years. A person can adjust this up to increase the chances and timeframe to this goal.


The road to financial independence does not need to be complicated. In fact the habits and math are about as simple as could be. Why not implement them on cruise control and go live our lives! SEE RELATED: How To Be The Next Millionaire Next Door

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