Homeownership, children, brand-new cars, weddings and retirement have long been considered the milestones of the so-called “American dream.” A Maryland finance professor breaks down the nuance behind what it costs to live the dream.

Financial media website Investopedia calculated what it would cost to achieve the “eight pillars of classic American middle class aspiration” and came up with $5 million over a lifetime.

But University of Maryland finance professor David Kass said the actual numbers are much more subtle, but he said that it is obtainable.

Kass said there are many variables to reaching the American dream, which Investopedia defines from James Truslow Adam’s “Epic of America” — “that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement.”

That’s because each person’s goals are uniquely different, Kass said. But there is one universal truth he believes is essential to living a comfortable life — start saving early and never stop.

“One needs to be able to be well disciplined throughout life, in terms of being able to save,” Kass said. “Each family has their own financial goals that could differ quite a bit among families or individuals.”

Kass added that even if you’re getting a late start when it comes to savings, he advises starting immediately.

“It’s the savings and growth of savings, over time, which compounds, that I think will permit families or individuals to achieve what could be very lofty financial goals,” Kass said.

The Investopedia report acknowledged that because of inflation, it’s becoming more difficult to reach many of the financial goals outlined.

“Putting aside a certain amount of your income, regardless of the size of your income, and then investing it wisely and having it grow, hopefully at a rate exceeding the rate of inflation,” Kass said.

Here is Investopedia’s breakdown of what the $5 million American dream consists of in 2025:

• Retirement — $1,636,881 million
• Health care — $414,208 (Investopedia says that’s what is needed for access to quality health care for a person’s entire adult life from 22 to 85)
• Homeownership — $957,594 (Home with a median price of $415,000 with 20% down and a 30-year fixed mortgage of 6.69% and it does not include HOA or maintenance fees)
• Raising two children and paying for college is $876,092.
• New car — $900,346 (Two cars a year every 10 years, including financing, insurance, maintenance)
• Annual vacation — $180,621
• Pets — $39,381
• Weddings — $38,200

Kass said developing a long-term strategy with a balanced portfolio of cash, investments, securities and real estate will make all the difference.

WTOP’s Abigail Constantino contributed to this report.