Can You Retire a Millionaire Investing Just $10 a Day? The Answer Is Yes -- Here's the Math

While millionaires aren't as rare as they once were, it's still easy to think of a seven-figure net worth as something that's out of reach for you. But if you regularly invest a chunk of your savings, it might not be as far away as you think.

It's possible to retire a millionaire while investing just $10 per day. But a few things have to go right for you to pull this off.

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How to retire a millionaire by saving $10 per day

There are two things you need to do, in addition to making daily $10 investments, to retire a millionaire. First, your investments need to do well over the long term. This will generate earnings -- extra money you'll get when you sell your investments due to an increase in the investment's value over the holding period.

Second, you need time on your side. The more time you have until you retire, the more your investments can grow and the more earnings you'll get.

A change in one of these factors affects the other. For example, if your investments don't perform as well as you expected, you can still reach your savings goal, but it'll take longer. When the value of your investments soars, you can reach your goals faster than expected.

The tricky part is that investment returns aren't predictable, and the time to retirement isn't always, either. Some people have to retire early due to health issues, while others may have to work longer because they don't have enough savings.

But in spite of this, if you make steady $10 daily contributions, becoming a millionaire is still within the realm of possibility. With a 10% average annual rate of return, it would take a little over 35 years if you're starting from zero. You may be able to get there faster if you already have some retirement savings.

Why you shouldn't panic if you can't follow this plan exactly

The above example is just one of many ways you could retire a millionaire. If you're not able to save $10 per day consistently, you may be able to make up for it with larger retirement contributions at other times, such as when you get a tax refund or year-end bonus.

You could also delay your retirement to give yourself a little more time to save. This has the added benefit of reducing the length, and therefore the cost, of your retirement.

It's also possible that you may not need to save $1 million on your own to retire comfortably. You might get a 401(k) match from your employer that helps out. You'll get some money from Social Security -- yes, even if you're retiring decades from now. And if you're married, your spouse might also be contributing to your household retirement savings.

So it's OK if the above strategy doesn't work for you. Develop a plan that does, and focus on reaching that goal instead.

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