I Asked ChatGPT How Long Becoming a Millionaire Would Take on a $60,000 Salary

Earning a five-figure paycheck can lead you to millionaire status. This means the average person might be capable of achieving major financial security without incurring a windfall — eventually. A salary of $60,000 per year would put you in this category. As of May 2024 — the most recent available data — the annual mean wage of all U.S. occupations is $67,920, according to the Bureau of Labor Statistics.

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With that in mind, GOBankingRates asked ChatGPT how long it would take to become a millionaire when earning $60,000 per year.

Doing the Math

There’s no set amount of time it would take to amass a $1 million net worth on a salary of $60,000. It’s primarily determined by three variables — the amount you save and/or invest each year, your investment return date and the costs (mainly taxes, lifestyle expenses and debt) you’re responsible for paying, the chatbot said.

ChatGPT shared the following four examples to highlight how these factors affect the timeline.

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Saving Cash, No Investing

If you save $10,000 per year — approximately 17% of your salary — it would take 100 years to become a millionaire, the chatbot said. The lack of investment growth makes this path virtually impossible.

Saving and Investing

Assuming you saved 20% of your salary per year — $12,000 annually — and invested it with a typical stock market return of 7%, you would become a millionaire in roughly 30 years, ChatGPT said.

Saving and Investing More

Finding a way to save 30% of your annual income — $18,000 per year — investing at a 7% return could pay off. Using this approach, you’d join the millionaire’s club in around 25 years, according to the chatbot.

The manner in which you invest could also change your millionaire timeline.

“Saving 20-30% of your income and investing in broad index funds could make you a millionaire in 25-30 years,” ChatGPT said.

Aggressive Saving and Investing

Cutting out as many expenses as possible to achieve this goal will yield faster results. If you save 40% of your annual pay — $24,000 per year — and receive a 7% return, you’ll have a $1 million net worth in approximately 21 years, the chatbot said.

The Bottom Line

Ultimately, on a $60,000 annual salary, you must invest to become a millionaire, ChatGPT said. You can also get to the finish line faster by starting to live frugally at a young age and increasing your income — typically by getting a side hustle or learning investing skills.

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This article originally appeared on GOBankingRates.com: I Asked ChatGPT How Long Becoming a Millionaire Would Take on a $60,000 Salary