I Make $13,000 a Month – How Can I Achieve My $1 Million Goal by 30?

A 20-year-old Reddit user is working in emergency medical services and is making around $13,000 per month after factoring in his wages and overtime. He wants to retire in his 40s, and he’s hoping to have $1 million saved by age 30.

So, how should he achieve this goal and get himself on the path to the early retirement that he’s dreaming of? 

How to Save $1 Million by 30

To create a plan to save $1 million by age 30, the Redditor will first need to calculate how much to invest each month.  The poster explained that he has $85,000 invested right now. Since he has 10 years to grow that $85,000 into $1 million, the calculators at Investor.gov show he’ll need to save $5,022.95 every month for the next decade, assuming a 7% average annual return, if he wants to hit millionaire status by his target age.

The poster explained that he nets around $2,500 per week, and his total monthly spending comes to $2,205. That means he should have around $7,795 left over to invest — more than enough to hit his target goal. To make sure he stays on track, he may want to automate his contributions to his investment accounts to ensure he always gets the money where it needs to go.

He should also make sure that his $1 million by age 30 target is sufficient to enable early retirement at 40. That will depend on how much he hopes to spend as a retiree. If he plans a safe withdrawal rate of 3.7% and hopes to be able to generate around $10,000 in monthly income as a retiree, he’d need around $3.24 million by age 40.  If he had $1 million saved by 30, he’d need to up his investment account contributions to $7,677.13 per month between the ages of ages 3o and 40 to have enough. 

It may get harder for him to save as he gets older, and he may need this higher income in retirement, because he could find himself taking on new commitments, including getting married or having children. And, once he retires, he’ll need extra income to pay for health insurance until he reaches Medicare eligibility at 65. So, investing more and upping his $1 million goal may be in order. 

Where to put your investments when you’re saving up $1 million?

The poster here not only wanted advice on how to hit his $1 million target, but also advice on where he should put his funds. He said he is not investing in his 401(k) right now, despite his company providing a match, because he thinks he’ll want to access the funds sooner than traditional retirement age.

Still, this is shortsighted because he is passing up free money, and he will eventually reach retirement age when he can access his 401(k) funds. He should focus on maxing out his 401(k) match first and foremost to avoid losing this opportunity.  He can keep this money growing as he spends from his taxable brokerage accounts earlier in his retirement journey. 

Other Redditors also suggested taking advantage of a Roth IRA, which will allow for tax-free growth and tax-free withdrawals while providing a bit more flexibility since contributions can always be withdrawn penalty-free. And, of course, some funds will need to be in taxable accounts to enable the very early retirement the poster desires. 

Because the poster needs to balance the need for early access to funds with the tax benefits that retirement accounts provide, it will be critical to get professional financial help. That’s especially true given his ambitious goal. A financial advisor can provide key insight into where and how to save, maximizing the chances that the young Redditor can turn his high income into true wealth. 

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