From CNBC: 2024-12-13 14:13:35

Financial advisors say building a $1 million nest egg is achievable for anyone, regardless of their job. By saving and investing a percentage of every dollar earned, individuals can work almost any job and retire a millionaire. The number of 401(k) and IRA millionaires is growing, fueled by stock-market gains.

Starting early and consistently saving are key to reaching $1 million in retirement. With average market returns of 7%, a 30-year-old making $60,000 a year could achieve this milestone by saving $500 a month. Avoiding debt and increasing expenses, while taking advantage of employer matches, can accelerate savings growth.

The amount needed for retirement varies, with the 4% rule suggesting $1 million could generate $40,000 annually. Fidelity recommends saving 10 times your annual salary by age 67 for a comfortable retirement. Aim to save 15% to 20% of your income, adjusting based on your desired wealth and timeline.

Balancing enjoying life today with saving for the future is crucial. Allocate 20% of expenses to what matters most to you, like vacations or technology, while cutting costs on the remaining 80%. Finding this balance ensures a good quality of life while working towards financial goals.

Read more: Here’s how to retire a millionaire, according to finance pros