Through this blog post, we aim to discover how long it would take someone to spend 1 million dollars. Additionally, we will also explore the estimated net worth of the average American family as well as how much and how to save a million dollars.
How Long Would It Take To Spend 1 Million Dollars?
How long it takes for someone to spend 1 million dollars depends on how much they spend. For instance, if you spend $1,000 every day, it would only take you three years to spend 1 million dollars.
However, if you are someone who has saved 1 million dollars and aims to spend them after their retirement at 65 years of age, you can expect the 1 million dollars to last at least 20 years; assuming that your annual expenses are $50,000.
In order to save 1 million dollars by the time you retire, you would need to start with s little as $400 when you are 25 years old.
What Is The Net Worth Of The Average American Family?
The average American household has a net worth of $97,000 according to the United States Census Bureau. However, millions of Americans struggle to make ends meet and live paycheck to paycheck. For those who are financially secure and earning a six-figure salary, spending one million dollars is not nearly as difficult as it might first seem.
In fact, if you were to invest your entire salary over the course of 30 years at a 6% annual return, you could amass a seven-figure net worth in just 15 years. However, most people do not earn six-figure salaries or have the luxury of taking 15 years off from work to build their fortune.
How Much Should I Save Before Spending 1 Million Dollars?
If you earn $100,000 per year but pay $50,000 in rent or mortgage payments each month, you’ll need to save approximately 22% of your income every year simply to have enough savings for emergencies. You can start by saving $5 a day in a high-yield savings account such as an online certificate of deposit (CD).
Then you’ll need an emergency fund that covers at least three months’ worth of living expenses. The average American family has less than three weeks’ worth of living expenses on hand at any given
The amount of time someone takes to spend 1 million dollars depends on their expenses. If you spend it without planning for the future, you could run out of the amount within three years. However, if you plan ahead and maintain your expenses, 1 million dollars can last you 20 years.