Compounded interest is a way to make your money last longer. A dollar you save in your twenties will be worth $10 when you retire. It is possible to retire a millionaire if you save consistently, even if your salary is average. Let's take a look at what it takes to make this happen.AdvertisementSave as soon as possible.Compound interest is the best way to increase your wealth. This process allows you to multiply your money exponentially by leveraging interest earned on money that has been saved and any accrued interest. You can participate in this process for longer periods of time, so every dollar you save in your twenties will be more valuable.There are many obstacles that you must overcome when saving money in your twenties. You might be spending a large portion of your twenties in school, rather than working. This will likely reduce your earning potential and make it more difficult to find work. It is still possible to fund your million-dollar retirement even if you have student debt.You can save a million dollars by starting at 22To earn $1,000,000 by the time you turn 67, if you start saving at 22 and inflation is constant at 3%, you would need to save $282 per month. This retirement calculator allows you to play with the math.If you earn $33,280 annually, the median full-time income for those aged 18-24, then 10% would be saved to reach this goal. This is what most financial advisors recommend.It is not an easy task in the beginning years of your career. You will probably have to make sacrifices (like living at home for awhile) but it is definitely possible. The good news is that between 25 and 34, the median U.S. salary rises to $47.736, a remarkable 30% increase. You have two options: you can either continue on your current course or increase your contributions to help reach your million-dollar goal sooner.
