If you are an American, the answer is about 20 years. For Mexicans it’s over to 300 years. As you can see from the graphic below, based on a country’s median income, America still provides the best opportunity for the average Joe to get to millionaire status within their lifetime. The calculation for the table below is rather basic – $1 million divided by the average household income. The American average household income is around $50,000, hence the ~ 20 year figure. Of course in reality the after tax net saving and investment amounts for most American households is far less than $50,000. So while 20 years may sound like a long time, most of us need way more than that to reach the six figure mark.
While a million dollars sounds like a lot it is by no means a guarantee of financial freedom. In fact to retire with an annual income stream of $50,000 a year you would need more than a million dollars in savings – so the earlier you start the better. And despite everything you read becoming a millionaire basically boils down to good saving and investing habits instilled via financial self discipline.
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