Is it possible to become a millionaire

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It's a good idea to take advantage of your company plan if one is available—especially if there's an employer match. You can deduct your contributions, and the earnings in the account grow tax-deferred.

Most people with earned income can contribute to a traditional or Roth IRA. The major difference between the two IRAs is when you pay taxes. With traditional IRAs, you can deduct your contributions the year you make them. You pay taxes when you withdraw the money in retirement.

Roth IRAs work differently. You don't get the upfront tax break. But qualified withdrawals in retirement are tax-free. No matter what type of IRA you have, the contribution limit is the same. SEP IRAs can be established by the self-employed and those who have a few employees in a small business. Taxable brokerage accounts provide a way to invest additional funds after you max out your retirement accounts. Be aware that you need to pay taxes on the income generated in these accounts in the year you receive it.

If you start early and save regularly, you can make a million dollars by contributing to your retirement savings accounts.

To take full advantage, try to contribute the maximum limit. Let's take a look at how an average person, let's call him Joe, can reach this million-dollar goal by the time he retires at age Let's assume Joe:. For the purposes of this example, we'll assume Joe's salary remains the same until retirement.

Of course, in real life, he'd likely get a raise and his nest egg would grow even more. Here's the breakdown of his savings over the 34 years. Welcome to the Millionaire Club, Joe! If he started his plan at a different age, here's what his results would look like:. The easiest way to become a millionaire is to take advantage of compounding by starting to save your money as soon as possible.

The earlier you save, the more interest you accumulate. And you'll earn more money on the interest you earn. You can also reach your million-dollar goal by cutting down on unnecessary spending and getting financial advice from a professional. If you're able to, consider upgrading your work skills or getting a second job. The amount you'll need to invest to become a millionaire depends on where you are in your life.

You can afford to sock away less money when you're younger because you have more time to accumulate your wealth and you can tolerate more risk.

If you put off saving until you're older, you'll have to put away more money every month. Unless you come from a very wealthy family, are expecting to win the lottery, or are on the verge of getting a patent on the next great invention, there's very little chance that you can become rich by doing nothing.

You'll need discipline, a plan, and, in some cases, good advice from a registered professional who can help push you in the right direction to reaching your goal of becoming a millionaire. Of course, how much you actually earn depends on how well your investments do. That means not putting much of your money in low-earning certificates of deposit CDs and money-market investments.

Instead, you should consider choices like equities to achieve returns that can outpace inflation—and grow your savings. The key is to start while you're young, stay disciplined, and make and keep a long-term financial plan. The ride may be slow, but you'll be pleased with the long-term results. Making your first million won't be easy—but it doesn't need to be impossible.

Bureau of Economic Analysis. Bureau of Labor Statistics. Retirement Confidence Survey. Northwestern Mutual. Internal Revenue Service. Retirement Planning. There's no "secret formula" to amassing wealth. But I can tell you that road to becoming a millionaire is much easier when you're in your 20s: You have more energy, less dependents and little to lose. Slacking in school won't get you anywhere. Your binge-watching habits will only hurt your GPA.

Be one of them. You're paying thousands of dollars for your education, so why not take advantage of it? You can keep insisting that grades don't matter, but it won't change the job market competition. While some prestigious companies will tell you that "GPA isn't the whole story," it doesn't mean they won't ask for your transcript — because believe me, they will.

Graduating with a 3. But it still wasn't easy. I spent six months aggressively applying for jobs and went through 55 interviews before getting an offer. I was once a poor college student, so just landing a job with any consistent salary made me feel rich. But I continued living like a student for years even after my first full-time job.

It took a lot of willpower and discipline to save as much as I did. I didn't make excuses as to why I needed nice clothes or a new car.

I shared a tiny studio with a friend for two years to keep my living costs low. Remember, if you're not in pain from the amount of money you're saving each month, you're not saving enough. Working hard takes absolutely no skill. I promise that if you're the first person in the office and the last to leave, you'll get ahead. Pay your dues early and you can relax when you're older.

Will your social life suffer? A little bit, yes. But you're young, remember? Your energy is limitless! Early in my career, I got to work at a. I learned a lot, got more done and gained the respect of my peers.