There’s no need to phone a friend to be a millionaire

WHO wants to be a millionaire? The answer would be yes for most people and it is technically possible to get there, by investing regularly in your tax-free Isa allowance.

That million pounds will be tax-free for life inside an Isa, although you will have to work hard to build up a seven-figure sum.

The Isa allowance is £20,000 this tax year, and you would have to invest that amount annually for 25 years to make £1million. If you invested £10,000 a year instead, it would take 36 years to hit that target, according to research from Fidelity International.

This means investing in a stocks and shares Isa, though, rather than a cash Isa, where savers struggle to get more than one per cent on instant access.

Fidelity’s figures assume your money grows at five per cent a year, before charges. If it rises at a faster rate you will hit £1 million sooner.

Although these sums are beyond most people’s pockets, younger investors could still make £1 million, by being disciplined.

A 25-year-old who saved £2,500 a year and increased this every year in line with earnings growth could have more than £1million by age 64, in this case taking 39 years.

Fidelity’s investment director for personal investing, Tom Stevenson, said a pay rise is an opportunity to increase your monthly investments: “Starting with a smaller amount and looking to increase this over time may take longer but is an all-important step in building your portfolio.”

Saving something for the future is better than saving nothing: “By contributing £50 a month you could generate £19,818 in 20 years.”