No matter how old you are, if you’re a financially ambitious person I can guarantee you’ve been exposed to at least one “get rich quick” scheme. You might’ve even clicked on this because you were hoping it’s one of those, but it’s not exactly that. Saving money is something financially successful people do very well, and if you can save like I’m telling you to, you won’t be an exception to the rule.
Individual Retirement Accounts (IRAs) are accounts set up to help save money for retirement without being taxed when you retire. In America, you may have seen advertisements for companies like Fidelity that can help you set up a “roth IRA”, which is an IRA that isn’t taxed when you withdraw your retirement savings.
How Does an IRA Make You Rich?
If you don’t have a retirement account set up, there are two factors that will determine how fast your IRA will reach $1,000,000. (1) Your age. The sooner you start saving money, the quicker it will add up. (2) How much to save per month. The more the save per month, the more is going into your account.
Some companies allow you to open up a Roth IRA as early as 18 years old, and saving $250 per month will save over a million dollars by 65. This graphic shows how your money adds up:
While it’s definitely not required to put aside $6000 a year ($500/month), this graphic is representative of the idea that by starting at a young age, you can maximize your IRA and retire a millionaire through a reasonable plan.
How To Get Started
Making Money
The first step in this whole process, regardless of age, is making the money you’ll be saving up. Get a job that has regular hours and a livable wage. If you’re young and “don’t need a job” right now, take advantage of this time by saving more and getting a head start. If anything, you could save towards a car or your own apartment. Working 10-15 hours a week compared to not working at all makes a huge difference.
Budgeting
Once you start making your money, it’s important to start budgeting your money. A lot of times people will hear the word budgeting and associate it with a complex series of calculations to figure out what’s happening with your money, when really you’re setting a limit to how much you should spend on things with the money you have. Examples of things to include in a budget is gas money, monthly bill payments, and how much money you’ll spend on food. Companies like Wells Fargo track your spending and categorize each purchase to show you the average amount of money you’re spending every month. Using this data you can pre-determine how much money you want to spend vs save.
Saving
When you start saving money every month, it’s important to transfer a portion of that money into your IRA. Objectively, it doesn’t really matter when you transfer the money, but in all things, it’s important to create a routine to ensure it does in fact happen.
This concludes this blog post on IRA’s, if you like what you read make sure you subscribe to the blog to get notifications for future posts. Entering your email will give you email notifications of each post, and even a convenient way to read the post through your email.
Take care of yourself and someone else,
-Brandon
A Look Around Blog 
One response to “A Realistic and Feasible Plan to Retire a Millionaire”
Awesome post! Feel free to check out my post on the key to retirement! https://planningonfire92.wordpress.com/2020/06/17/what-is-the-key-to-early-retirement/
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