The experts say if you save 15% of your income for 40 years, then you’ll be comfortable in retirement. I think $6 a day, which goes into super, will make you into a millionaire!
I’ve seen calculations that say that if you save $2,000 a year between the ages of 21 and 30 (that’s $20,000) you can turn that into a small fortune. If you average 8% return, it will be over $500,000 by retirement. If you keep doing it, it will be over a million bucks.
But let’s take out tax and assume a lower return but factor in the fact that you’ll get 9% compulsory super from your boss, which goes to 12% over the next few years. With your $6 a day into super trick, this guarantees that you’ll end up a super millionaire.
Of course, you could save outside of super to have access to it but you will be taxed more highly on it. However, you could save money by using it to pay down a mortgage, which is more tax effective.
Why $6 a day? Well, that would mean you save $42 a week. Over 52 weeks, this is more than this $2,000 figure, which, via compound interest, can turn magically into a million dollars!
Of course, you have to have the dream to be a millionaire and you have to always remember that you don’t get to be a millionaire in a day but daily. I know I can be repetitive but I am trying to break down years of bad habits and thoughts, as well as behaviours, that could cost you a million dollars!
Finally, if you can’t motivate yourself to do it, then pay someone to make you do it. Being a scab could cost you a million dollars or more.