If you want to have a million dollars in the bank, forget Lotto tickets or waiting for an inheritance from a rich relative… the only guaranteed way is to start investing early and regularly.

The key is discipline and time. Saving little amounts, on a regular basis over an extended period of time will guarantee $1 million.

A $5,000 deposit and an additional $300 a week will turn in to $1 million after 25 years at a 6 per cent annual return.

A 21 year old on $60,000 a year who salary sacrifices an extra 9 per cent (on top of the compulsory contribution) in to a growth oriented superannuation fund ($6,300 a year or $121 a week) will have a $1 million balance by age 65.

In fact, we believe anyone can achieve that lofty goal of becoming a millionaire if they start early and follow these simple tips.


Forget the house, that portfolio of sure-thing-shares and any savings you might have squirrelled away. You are your biggest asset.

Your ability to work, whether it’s a part-time wage, a full-time salary or income from a business, is worth millions in the long run.

So treat your career as an investment, and see the income you receive as the return on that investment. That means taking control of your earning power to maximise that return.

Set some goals about what you want to achieve, because whether it’s doubling your wage in five years, building skills to advance from a current role or making the shift to a job with a better future (and which you’ll enjoy), it helps to have a plan.

And while we’re big believers that life is all about taking advantage of opportunities that present themselves, we also think if you’re proactive in developing skills, confidence and a personal brand, more opportunities will ‘magically’ present themselves over time.

Think about it. Change careers and earn, say, an extra $25,000 a year which you invest (and not spend) and that becomes a powerful wealth building tool.

For those that hate their current job, feel underpaid or even unloved, remember that we’re always learning and our experiences play a big part in shaping who we become.


Compound interest is an incredibly powerful wealth creator. So much so that Einstein is said to have referred to it as the ‘eighth wonder of the world’.

As with other investments, making the most out of compounding requires a long-term outlook. And as the following example shows, it’s critical to start early.

Sarah is a young investor who starts putting away $200 a month at age 20, earning an average interest rate of eight per cent compounding monthly (remember this is an example only). She stops making deposits at age 30 after popping away $24,000 and doesn’t touch her money until she retires at age 65.

Her friend Brian, on the other hand, is a late starter. He starts to save when he hits 30, but diligently saves $200 a month until he retires at 65, by which time he’s deposited a grand total of $84,000.

Who do you think will have the bigger nest egg to retire on?

If you said Brian, you’re wrong.

By the time Sarah stops investing, she will have earned $12,833 in interest on top of her $24,000 in deposits. A decent return for ten years of saving.

But over the next 35 years, that $37,033 nest egg will grow to $603,362, assuming she continues to earn the same eight per cent rate. Meanwhile, Brian’s strategy will only earn him $462,035 in the same period.

This compounding doesn’t just apply to savings accounts either. Research data shows the Australian sharemarket returned an average 11.1 per cent per year over the last 30 years, assuming dividends are reinvested.

So ditch the Lotto ticket and get serious about building your earnings power and putting regular savings away. Discipline and time will always be the most assured ways of reaching that magic million dollar mark.

Bonus compounding question… which would you choose?