The key facts

  • Without interest, a million rubles is reached in 100 contributions of 10,000, 50 of 20,000, or 34 of 30,000 rubles
  • At a 10% annual rate with monthly capitalization, the timelines shrink to six, three and a half, and two and a half years
  • The economist advises first building a reserve covering 3–6 months of expenses, then saving toward a major goal

How long it takes to save a million rubles

Pyotr Shcherbachenko, an associate professor at the Financial University under the Government of the Russian Federation, presented Gazeta.Ru with calculations on how long it takes to accumulate a million rubles. Without counting interest, the goal is reached in 100 monthly contributions of 10,000 rubles, 50 contributions of 20,000, or 34 contributions of 30,000 rubles — that is roughly eight years and four months, four years and two months, or two years and ten months, respectively. In the last scenario, the total of one's own contributions would come to 1.02 million rubles.

How interest shortens the timeline

According to Shcherbachenko's calculations, at a constant rate of 10% per annum with monthly capitalization, the savings period shrinks to about six years with monthly additions of 10,000 rubles, to three and a half years with 20,000, and to two and a half years with 30,000 rubles. This scenario, the economist noted, assumes regular contributions, no withdrawals, and the rate remaining unchanged throughout the entire savings period.

Main obstacles and choosing an instrument

Shcherbachenko named the lack of a separate reserve as one of the main obstacles to saving: unexpected expenses force people to take money meant for a major purchase and start over. The second problem is inflated expectations: trying to gather a million in a year on an unstable income can lead to abandoning the goal after the first difficulties. The economist recommended first building a reserve covering 3–6 months of expenses, and only then saving toward a major goal. For money that may be needed at any moment, he suggested considering a savings account, and when choosing between it and a fixed-term deposit, weighing the terms for deposits, withdrawals, and interest accrual: early closure of a deposit often results in losing a significant portion of the income. Earlier, the outlet recalls, Russians were advised not to stop saving after major expenditures.