In the past, being a millionaire was mostly a marker of wealth rather than a necessity.
However, with the rising cost of living, longer life expectancies, and the growing number of years the average Singaporean will spend in retirement, each of us might actually need a million dollars to see us through our golden years comfortably.
The need to save more for retirement applies especially to millennials and Generation Z, who will bear the brunt of rising healthcare costs but enjoy ever-increasing life expectancies.
As such, learning to save money to achieve the goal of a million dollars is becoming more crucial.
While the thought of saving a million dollars may sound daunting at first, the power of investing and compounding actually make the task more achievable than you may have imagined.
How much do we really need to save each month?
If we plan to retire in 30 years and need to save a million dollars, simple mathematics dictates that we will have to save at least $33,333 a year, or $2,777 a month. The majority of Singaporeans might look at that number and gawk. $2,777 a month in savings can be difficult to achieve,