How To Become A Millionaire By Investing (Without Starting Young)

millionaire investor

I really hate those articles and videos which start by telling me I can become a millionaire by investing just £100 or even less every month only for me to find out that in order to do so I should have started young. And when they say young, they mean just finished school or graduated from University – so around 21-25 years old. The problem is I’m not young. Yes, I’m not old but I’m 31 and 31 is 5-10 years more than the suggested amount. Does that mean it’s too late for me and I can’t become a millionaire? In this post, I want to tell you that, that’s not true. You can still become a millionaire without having to start young.

Investing rather than saving is one of the best ways to grow your money. Anyone can start investing and all you need is a minimum of £10 however if you want to become a millionaire you’re going to need to start investing a lot more than that and regularly on a consistent basis every single month. However, I am not talking about investing thousands of pounds because not everyone is fortunate enough to have that opportunity.

In this post, I’m going to suggest some simple tips that you can start implementing from today to make your way towards the millionaire status and you don’t have to be young to start. You just need to be extremely patient and committed.

Saving vs Investing

Most of us from a young age are taught to save as much as we can in order to have a nice of money available to us when we retire. However, even with a pension provided by your workplace combined with a private pension (I use PensionBee) to which you regularly contribute, it can still take a very long time for you to have saved an amount that is sufficient. Let’s look at the numbers.

If you manage to save £200 per month which approximately equals less than £10 per day, then after one year, you will have only saved a total of £2400. If I was to continue saving in this way for the next 37 years (until my state pension age of 68 years old), then I would have only saved £88,800. That doesn’t sound bad however if you invested that £200 per month instead – assuming a conservative return of 6% annually – that £200 per month over 37 years would be £313,754. That’s a significant difference.

You can check these results on an investment calculator.

Therefore it’s obvious that investing is a much better option than saving. Taking myself as an example, being a 31-year-old regular investor in the stock market, I could invest a little over £200 per month for the next 37 years and after having reached my retirement age of 68 years old I can easily become a millionaire. If I wanted to retire sooner than 68 then all I have to do is invest slightly more.

You can use the investment calculator link above to work out how much you need to invest on a monthly basis in order to reach millionaire status from whatever age you are. It will be harder the older you are however it’s not impossible.

Complimentary Reading: Investing vs Saving: Which Is Better And When

Which stock will help you get there faster?


There are many options that can help you reach millionaire status by investing. The first option is by investing in the S&P 500. If you’re in the UK then the stock that you’d want to invest in has the ticker symbol VUSA. The S&P 500 also is a collection of multiple companies that historically has yielded a growth rate of 8% year on year. According to Investopedia, the actual rate of return per year is 10%.

This is a little higher than the conservative 6% percentage that I had mentioned in the example above. The reason why I had chosen a conservative 6% rate is to demonstrate that even with a lower percentage you can reach your goal.

You could only invest in the S&P500 and nothing else and that would be sufficient. This post goes into detail as to the best ETF for 2021 and beyond.

Dividend Stocks

You can reach your goal much faster by investing in dividend-paying companies. The more shares you own in these companies the more dividends you will receive from your investments. You can then reinvest the dividends to grow your portfolio and that will cause a snowball effect which will only grow over time. You might find my post long dividend growth investing useful if you decide on this approach.

I consider myself a dividend investor because I invest for the long term I aim to receive a dividend on a monthly basis from my investments which I can then reinvest into my portfolio. This is a strategy that has proven to work overtime as long as we are patient and consistent in investing. Living proof of this strategy is Warren Buffett – who started early, however, he is now over 80 and only recently became a billionaire in 1990. Reaching a million happened for him – in 1969 – about 20 years before that.

Start Investing With This List: 7 Great Dividend Stocks You Can Buy And Hold Forever

Smaller companies

Smaller companies may right now not be as stable as the larger companies however Warren Buffett said that if he was to start investing again he would most likely invest in the smaller companies because there is a possibility that something within them may have been overlooked. Smaller companies have large potential but it’s important to invest in the right ones.

Recommended Reading: How To Read Stock Charts For Beginners

How to start investing today to reach £1million

The first step is to open up an investment account. You can do this by either signing up to a trading platform like Trading212, FreeTrade or you can open up a Vanguard ISA account. The second step is to determine what age is your time and age. Mine was 68 years old – according to the state pension age – however being 31 years old now, I would like to retire earlier, so let’s say at 55 years old. This means that I have approximately 25 years to invest a regular amount in order to reach £1 million.

If I can if I invest into the S&P500 at an 8% rate of return and deposit £500 per month into the investment account then I’ll be halfway there. I’m definitely going to continue investing so that I can surpass that £1miilion mark. Warren Buffet is 90 years old and still investing.

I found this Warren Buffet interview very interesting in which he’s asked how he can make $30billion and he outlines a strategy by starting with $10,000. It’s only a few minutes long so I’d highly recommend watching it.

How can I make $30billion?

Recommended Reading: How Much Should I Invest To Live Off Dividends?


It’s clear that investing your money is a much better alternative to saving it. Investing does carry a risk of loss but the risks can produce very huge rewards. Although saving may earn you a little bit of interest, the growth rate at current banks are as low as 0.1% and even at their highest of 3%, your return will be very linear and after a number of years, you won’t have made much from your money.

I’ll leave you with the following two key points:

  • You don’t have to be young to start investing in your goals. You just need to start.
  • You may not become a millionaire by investing but you still have earned returns you cannot earn by saving.

Hopefully you liked what I had to share. If so, pay it forward by sharing it with others.

About Mazaher Muraj

An established software engineer with over 10 years of experience having worked in the medical, financial and telecommunications sector. Other than that I'm a regular person just like you. I started investing to make my money grow and reach my financial goals. I faced a lot of obstacles at the beginning of my journey because I had so many questions and didn't know where to start. I started this blog to help others in a similar position, to provide high-level and helpful content to make the complicated things about investing as simple as possible for everyone.
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