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Investing in a company 401(k)

According to Ramsey Solutions, eight out of 10 millionaires invested in their workplace 401(k) plan.

Investing in a 401(k) workplace plan is simple. You can sign up to have funds taken directly from your paycheck into a tax-advantaged account. Your contributions are pre-tax and can be reported as deductible, reducing your taxable income.

If you're lucky, your employer will match at least some of the money you put in.

If you have access to a workplace plan, sign up. If you don't, you likely can still claim tax breaks for investing in an individual retirement account. Although you'll lose out on the benefit of matching contributions, the savings still makes investing for your future easier.

Kiss Your Credit Card Debt Goodbye

Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.

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Investing consistently

For three in four millionaires surveyed, investing isn't a one-time thing. Instead, consistent investing was key to building their seven-figure status.

When you invest regularly, you don't just end up putting more money into your account, you further benefit from compound growth and accelerate the growth of your wealth.

If you invest $6,000 once and leave it alone for 30 years, it'd grow into $104,696 after 30 years, assuming a 10% average annual return. But if you invest $6,000 every year for 30 years, you'd end up with over $1 million.

Keeping spending in check

Ramsey Solutions's research revealed that millionaires may not engage in lavish spending like you might expect. In fact, 94% of respondents said they spend less than they earn, while less than three-quarters said they'd never carried a balance on their credit cards, ever.

These millionaires typically reported spending $200 or less each month at restaurants, and 93% were regular coupon users. These Americans aren't going out and trying to keep up with the Joneses. They're making smart financial choices that allow them to invest in assets that grow their wealth consistently over time.

You, too, can choose to make these decisions. Prioritize investing, make 401(k) contributions and live within your means while avoiding high-interest debt to put yourself on track to grow your wealth.

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Christy Bieber Freelance Writer

Christy Bieber a freelance contributor to Moneywise, who has been writing professionally since 2008. She writes about everything related to money management and has been published by NY Post, Fox Business, USA Today, Forbes Advisor, Credible, Credit Karma, and more. She has a JD from UCLA School of Law and a BA in English Media and Communications from the University of Rochester.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.