So you want to become a millionaire? You’ve always had the desire to be financially secure but the task seems simply overwhelming. There are a few ways in becoming extremely rich. One of them includes being born into wealth and chances are, this may not be you. Plus, you don’t have much of a say in who your parents are! Another way is to invest and save your way into financial success. Many people never even start on the road to financial security because they view the entire process as time consuming and way too complicated when in fact, it is rather straightforward and requires discipline. The way to become wealthy is to save enough and invest wisely so your investment will compound overtime. Compounding is touted as a thing of wonder even for people such as Albert Einstein.

First, you need to decide to become wealthy. This is a psychological roadblock that you first have to overcome before you even think about being financially secure. Next, you need to setup investments that will be automatic and monthly. There are a couple ways of doing this. First, you can setup the investment in a 401(k) or 403(b). These are simply tax-deferred retirement accounts with your employer. This is the best place to first invest your money because your savings are taxed deferred and therefore you start with a bigger sum of money initially. You’ll be surprised how many median income earners in the United States have retired with one or two million. Sometimes even more. So don’t let the thought of not having a large enough income stop you. Here are a few scenarios to demonstrate what we are talking about:

As you see, any amount saved will produce a sizeable sum after time. Keep in these are people starting with zero dollars. Even at $500 a month over 30 years, at the current median income of the U.S. of $43,000 or so, all you need to do is put away 10 percent of your income to retire a millionaire. The more you put in, the more you get back and because of the magic of compounding, your tiny sum can grow to be very large. If you are young, in your 20s or early 30s it is very likely you will not have Social Security when you retire so it is important to plan for yourself. If you are starting later, you can save more but even with 10 years, you see that you can have a nice chunk of money.

Don’t let the magnitude set you back and get started!

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