19
The Path to $2 Million
Financial Freedom Account Status: $310.00
If you’ve come to my blog, you probably know that my goal is to achieve $2 million in savings in 10 years.
Do I have a plan for getting to $2 million?
Sort of.
Given my current circumstances, I’ll need about a year to clear my current debts. So after that, I’ll have nine more years to reach $2M.
I worked with ChatGPT to figure out how much I need to save/invest to reach $2M in ten years. We started with the assumption that I would be spending the next year focused on debt elimination.
I also asked it to progressively increase my contributions, so that I wouldn’t have to try to save a zillion dollars right away. This will buy me time to figure out how to earn more money.
Here’s what it came up with:
This is assuming a 7% return on investment, which Chat kindly tells me is average. (SoFi and Money with Katie agree; this looks to be a commonly accepted average return for the stock market.)
In the first year (after debt elimination), I “only” have to save $10,000. In the second year, it goes up by 75% to $17,500. And so on, up to a whopping $879,639 in Year 9, to reach the target of $2M.
How the heck am I going to earn that kind of money? No idea yet. But that’s a topic for another post.