Becoming a millionaire may seem like a far-off dream, especially to younger people, but with time and the right approach, it can be more achievable than you think. FOX Business’ Maria Bartiromo and personal finance expert Rachel Cruze recently shared a top strategy for making it happen.
Read More: Want To Make It to the Forbes Richest List? Here Are 10 Steps To Build Your Wealth
Find Out: These 10 Used Cars Will Last Longer Than an Average New Vehicle5 Cities You Need To Consider If You’re Retiring in 20259 Things the Middle Class Should Consider Downsizing To Save on Monthly ExpensesHere’s the Minimum Salary Required To Be Considered Upper Class in 2025How Far $750K Plus Social Security Goes in Retirement in Every US Region
You might be able to grow your savings to over $1 million with Cruze’s advice.
Cruze and Bartiromo believe the key to becoming a millionaire is participating in your employer’s 401(k) plan.
You may have heard of a “401(k) millionaire,” someone with a 401(k) balance of at least $1 million. According to Fidelity Investments’ latest retirement analysis data, the number of people achieving this goal is rising. Fidelity notes these millionaires “reach this level of retirement savings by starting early and contributing consistently over many years.”
Investing in a 401(k) doesn’t require a lot of money to start, and it offers several advantages that may help your savings grow faster than other account types.
Discover Next: Here’s the Minimum Salary Required To Be Considered Upper-Middle Class in 2025
Many employers offer a 401(k) match, contributing money to their employees’ accounts. This extra money can significantly boost your savings over time. According to Fidelity, 85% of the companies whose 401(k)s it serves offer a contribution match. The match amount differs from company to company, but Fidelity’s plans typically use a formula matching 100% of the first 3% of the planholder’s contribution and 50% of the next 2%.
A 401(k) plan offers various investment options, and you decide how to distribute your funds. The earnings from these investments are reinvested, which means you benefit from compound 12 SUVs With the Most Reliable Engines, similar to compound interest, so your 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years generate even more 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth.
401(k) contributions are often automatically deducted from your paycheck. You don’t have to rely on willpower to set that money aside.
