One Million Net Worth

What it takes to have One Million net worth


Amassing one million net worth can be a matter of mathematics. It’s well known that investing in the stock market for many years, reinvesting your dividends, and letting that money grow and compound can make you a millionaire. Eventually, your investments will throw off more money than you save each year. And one day it will throw off more than your entire salary for the year. That’s when you reached FIRE.

For example, if you invest $500 per month in a diversified stock market index fund, and earn an average 7% return, you will be a millionaire in 36 years. Or, another example, $500 per month compounded at 10% a year, you’ll have over a million dollars in less than 30 years.

If you invest in a lower-return investments, such as money market or guaranteed investment certificates (GIC), you will have to save thousands of dollars more to compensate for lower annual return. The Rule Of 72  at 1% it will take 72 years to double your money.

Your income plays a role, but the way you save and invest is more important. Wealth is what you accumulate, not what you earn. And it certainly can’t be measured by what you spend. Wealth is not the same thing as income. If you earn a lot of money and blow it every year, you’re not rich. You’re pretending to be rich.

Final Thoughts

Ideally, your net worth will continue to grow as you age – as you pay down debt, build equity in your home, and acquire more assets. I do not use our house/cars/RV etc.  in any of our retirement planning. But I do count it in our net worth. (net worth=all assets minus any liabilities.) Building a net worth of $1 million might not seem attainable, but it can be with hard work and patience. You don’t need a winning lottery ticket or a trust fund. You need to save as much as you can, for as long as you can, starting as early as you can. Making your first million will often take longer than making your second.


Don’t wait for retirement to enjoy life !!


  1. Having a million networth is a function of figure, rate and time. That is, the amount of the money you want or willing to invest, How regular do you want to invest the amount? Is it one time, yearly, bi-annually, quarterly or monthly? What rate of returns do you expect on the return/ How early do you want to start? How how long are you willing to keep the investment?

    • Thanks MFK ,The million dollar net worth is just a number I picked so I agree,it is a function of figure, rate and time

  2. Steve, I think there is an old saying that your first million is the hardest to get. It just makes sense. If you have a million and could earn 15% annually after tax you would have $2 million without adding a penny in about 5 years. Remember the rule of 72 🙂

    • Hi Tom, I agree compounding on compounding, it accelerates the more you have, time in the market, and rate of return. FYI I will be happy with a 15% after tax return over the next 5 years.

    • Thanks Mike, You need to save as much as you can, for as long as you can, starting as early as you can and get the best return you can.

  3. Steve,
    You are right: wealth “certainly can’t be measured by what you spend”. The journey is not that exciting. Just start early, and keep saving and investing consistently. After 30-40 years, a millionaire will be born. The result is sweet and rewarding. Yeah, delayed gratification.

  4. “Wealth certainly can’t be measured by what you spend.” I like this quote. I also believe that anyone at all can reach the 1 million dollar goal if they have time on their side and keep putting aside funds regularly in a fairly average return portfolio.

    • Hi Enoch, starting early makes it so much easier, and you are right anyone can reach the 1 million goal if they have time.

  5. I’m not there yet! Lol. But yes, a million isn’t what it used to be that’s for sure. I agree that it’s a matter of time, I do wish I was more organized with it when I was younger though.

    • Hi GYM, you are on the home stretch now! 1 million net worth by 40 is pretty awesome! And your dividend income will help you get there.

    • Hi Michael I agree a million is a great goal to strive for and it’s got a nice ring to it, but 2 million has a better ring to it.

    • Hi Paul, I truly believe you have to save as much as you can, for as long as you can, starting as early as you can. 1 million is just a number I picked out of thin air, the point was more about compound interest and starting as early as possible. Thanks for stopping by paul !

  6. Hi Steve!

    I just read your about me and realized you’re from Canada! yay… another Canadian. AND you reached FI at such a young age! That’s so awesome! 🙂

    I heard Victoria, BC is beautiful!! I’m hoping to visit Victoria including Vancouver one of these days.

    As for your post, this is great! My fiance and I have been saving and investing since we graduated from University.

    Without thinking much about it, we’re sort of shocked how our investments/net worth grew more than how much we actually save in a year. But that’s because the markets have been so great (very unrealistic). We haven’t experience the bears yet, so we’re hanging on tight and not ruling that out! 🙁

    Had we known about FI earlier, we would’ve watched our spending more carefully. We used to somewhat mindlessly spend without thinking much about it… When we saw our investments grow over the years, we were somewhat shocked. I wish I could teach this “start early” concept to every person who just graduated from school, but I know most won’t listen or care, haha…

    Overall, excellent post, Steve! Becoming a millionaire definitely takes time and patience. While young people are saving and investing, I agree they should have fun at the same time by spending and saving wisely. Leave the rest up to compound interest to do the work 🙂

    • Welcome fin$avvy panda !

      You and your fiance are doing so good and well on your way to FI, congrats ! I read all your post but yesterdays post Make Compound Interest Your BFF was very well written and it will be in tomorrows interesting stuff on the web. Thank you for all the kind words I appreciate your comments.

  7. “Don’t wait for retirement to enjoy life!”
    Never was a truer word spoken 🙂 in fact I would add that if you do not develop a lifestyle you enjoy BEFORE retirement, then you will hate retiring because what on earth will you do with yourself?
    So have hobbies, travel, exercise to stay healthy – save money but at the same time savour life! You only have one so don’t waste it 😃

    • Welcome Mrs Smelling Freedom

      I sooo agree, You only have one life so don’t waste it. Hobbies, travel, exercise and to stay healthy is what everybody should strive for at any age. Thanks for commenting

    • When I was growing up a million dollars seemed like a mystical number, but now the average house price on the west coast is over a million dollars. I agree 1 million is not what it used to be.

  8. One million net worth would assuredly be cool and is a nice goal, but one million liquid is my original “dream goal” from years ago, and still pretty much is. No real particular reason; it’d just be cool as hell to look at my bank account and see 7 figures.

    • Welcome Stephen, That’s a great goal ! I don’t use my net worth as much as I watch my investable assets. 1 million liquid assets would throw off a nice income source. Thanks for stopping by

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