Save $10 a day?

Question

I've heard saving $10 a day or something like that can make $1,000,000 in 20 years. can someone tell me how to do this? even though I'm in college, I'd like to start now and save about $1,000 a year, that way I have some when I get started. Thanks!

Answer 1

This is often called the Latte factor.  If you can cut your daily expenses by some daily amount, like skipping your daily latte, and invest it instead, the amount really adds up over the years.

In your case, this sounds like a "Double Latte Factor."

There's a great book by David Bach named Automatic Millionaire that really goes into setting up regular savings and investing, so it's automatic, and is very motivational.  It also covers the Latte Factor quite thoroughly.

Answer 2

yes  it can if return on investment is specified  .

Answer 3

Well, if you save $10 a day for one whole month it will be less then $1,000. To save $1,000 a month you would have to save about. $40.00 a day.

$40.00 x 7 days = $280.00 a week

$280.00 x 4 weeks = $1,120 a month.

$1,120 x 12 months = 13,440 a year

$13,440 x 20 years  = 268,800.

Thus meaning even $40.00 won't do it.