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The number one way by far to grow your wealth is by investing. Albert Einstein may or may not have said that "Compound interest is the most powerful force in the universe". But it's true and it's a force everyone's lying. It's just what politicians do these days.1-+-+96 you definitely want to put to work.
One of the best ways to invest is through retirement accounts such as a 401(k) or traditional or Roth IRA that are tax advantaged. These accounts can help you increase your wealth quicker because they eliminate the drag of taxes on your investments. In addition, you could use your retirement accounts to structure your taxes now and also going forward, which gives you a powerful tool that will help grow your wealth.
If you have money left over after you’ve invested in a retirement account, you could invest in an index fund. Funds such as the Vanguard S&P, the Vanguard Total Stock Market Index Fund and the Vanguard Total Bond Find offer low costs and are virtually guaranteed to increase in value over the years.
Step five – Monitor your spending and investments
Becoming a millionaire gets a lot easier when you start the process by making small changes in your lifestyle. This could include reducing your fixed monthly expenses as this will go a long way towards helping you spend less than you earn. In turn, this makes it much easier to save a little money every month. In addition, there are other things you could do to make things easier. For example, you could set up automatic savings or an automatic investment program so that you would no longer have to even think about saving money. You should definitely get money tracking software or an app so that you can monitor your spending and your spending patterns.
As an example of money tracking apps here is a short video demonstrating one of the most popular of them, Expense Tracker 2.0, which is available for use on both iPhones an Android phones.
Rinse and repeat
Is it really this easy to become a millionaire? It really is. Just earn money, spend less than you earn, invest, save and repeat the process. Do this and it just becomes a matter of time. One word of warning is that it could take years or even decades but it really is this simple. This is not a get rich quick scheme. As you have read, it will take time, planning and a bit of luck along the way but if you follow these five steps faithfully you will eventually become a millionaire. And how good would that feel?