How much money you need to save each day to become a millionaire by age 65

Happy woman marathon smilingJeff Topping/Getty ImagesThe earlier you start saving money, the better.

If you want to build a million-dollar bank account, start investing — and start as early as you possibly can.

“Becoming rich is nothing more than a matter of committing and sticking to a systematic savings and investment plan,” financial adviser David Bach writes in his book “Smart Couples Finish Rich.”

“You just need to make the right decisions — and act on them.”

To illustrate the simplicity of building wealth over time, Bach created a chart detailing how much money you need to set aside each day in order to have $US1 million saved by the time you’re 65, assuming you start with zero dollars and receive a 12% annual return.

We recreated Bach’s chart assuming lower rates of return: three, five, and eight per cent.

While the numbers in the chart below are not exact (for simplicity, it does not take into account the impact of taxes), they give you a good idea of how coming up with a few extra dollars each day can make an enormous difference in the long run, particularly if you start saving at a young age.

Next time you consider running to Starbucks for a $US4 latté, think about this chart and consider redirecting that coffee cash to your savings:

NOW WATCH: The way you pay with a credit card will start to change on October 1 — here’s what you need to know

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.