Become a millionaire with regular investments: This is how you save yourself rich

For the last 30 years, this has been possible with stocks. This requires a savings of “only” 360,000 francs – 1,000 francs each month for 30 years (12,000 multiplied by 30 francs) equals 360,000 francs. The remaining 640,000 francs are interest received from the stock market and compound interest.

Become a millionaire with minimum interest rate

Of course, savers cannot count on such returns being possible in the future. But it’s very unlikely. Because despite two world wars, the global economic crisis, the oil crisis and the financial crisis, high returns have been achieved in the stock market in the last 120 years. It is doubtful whether the future will truly be worse than the past.

If you still want to be on the safe side, you should accept significantly lower returns. For example, the minimum interest rate on the mandatory part of the pension fund assets can be calculated. This rate will be exactly 1.25 percent from January 2024. This means that to earn a million you need to be able to save 2,300 francs a month for 30 years.

However, in the first years of working life, most people cannot really put anything aside. Many people can only do this from the age of 40, leaving 25 years until retirement. To reach one million by saving during this period, you need to set aside approximately 2,900 francs per month with 1.25 percent interest.

Starting early makes you rich

This makes it clear that the earlier you start saving and the higher the interest rate on your savings, the higher your assets will be in retirement. If you can’t manage to set aside 1000 francs a month when you’re young, you can start with less, perhaps 200 or even 50 francs a month. It is better to save only a small amount rather than nothing.

To ensure that the savings amount is as high as possible, you can follow Hanneke van Veen and Rob van Eeden. The two Dutchmen saved a lot and are considered the most stingy couple in Europe. They say there is “sympathetic stinginess”. For example, if you live frugally and don’t use more than you need.

In fact, there are sympathetic (sustainable) and less sympathetic parsimony:

Sympathetic stinginess:

• If something breaks, fix it and don’t buy a new one.
• Quitting smoking.
• Instead of going shopping or to the bar, stay at home and pamper your partner.
• To save on heating costs, have breakfast in bed in winter, otherwise wear special warm aprons.
• Look for a hobby that costs nothing but makes money: for example, quilting patchwork blankets, making stained glass, or selling your own used items on auction platforms.
• If you are thirsty, do not immediately buy the 5-franc PET bottle and throw it away five minutes later. It is better to carry a water bottle with you at home. A person who collects two PET bottles a week will save 520 francs.

Meaningless stinginess:

• Always allow yourself to be invited, never invite others.
• Return the half-empty bottle to the restaurant on the grounds that the wine is on tap. Don’t tip afterwards because you will be very upset.