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How to Become A Millionaire Before Getting Retired? Fidelity’s Ultimate Retirement Advice

Financial Advisory

We have all daydreamed about it at one point or another: sitting on a pristine beach with the sun kissing our skin, a refreshing beverage in hand, all while our bank account hums a delightful seven-figure song. Believe it or not, this is not just the stuff of dreams. An increasing number of workers are tapping into that millionaire status well before the golden years.

Curious about joining this elite crowd? Fidelity has got your back with the ultimate guide to fat retirements.

Stay Debt-Free (or As Close As Possible)

Debt is like a ball and chain for your finances. It is hard to move forward when you are constantly being pulled back. Focus on paying off high-interest debt first and try to avoid accumulating more.

Jop Well / Pexels / Although a million dollars is not that much given the 2023 rising inflation, getting there is still a milestone achieved.

 

Your future millionaire self will thank you.

Max Out Your Contributions.

401(k), Roth IRA, Traditional IRA. If these sound like random letters and numbers, it is time for a crash course in retirement accounts. These accounts offer tax advantages that can supercharge your savings.

Contribute enough to get any employer match – it is essentially free money – and then aim to max out your contributions each year.

The Early Bird Gets the Millionaire Worm.

If there is one piece of advice to etch into your brain, it is this: Start early. The power of compound interest is no joke. It is like a snowball: small and modest at first, but as it rolls downhill, it grows exponentially.

Andrea / Pexels / Start as early as you possibly could. And you will be well on your way to becoming a millionaire.

Starting with even a small amount in your 20s can result in a heftier sum than starting with a larger amount in your 30s. Remember, it is not just about the amount you save. But the time it gets to grow.

Live Below Your Means

This does not mean you have to live in a shack and eat ramen noodles every day. It just means being smart about your finances. Drive that car a year or two longer.

Maybe reconsider that daily $5 latte. Saving an extra few hundred dollars a month can result in hundreds of thousands more in your account come retirement.

Invest Smartly and Diversify

You do not need to be the next Warren Buffett, but a little market savvy goes a long way. Diversification is the name of the game. Stocks, bonds, real estate. Spread the love (and your money) around.

Alex / Pexels / To join the millionaire club early on, start investing and diversifying as early as possible.

And remember, it is about time in the market, not timing the market.

Side Hustles Aren’t Just for Hipsters

Got a knack for photography? Maybe you are a whiz at graphic design. Turn that hobby into a side gig. Not only do you get the added bonus of doing something you love.

But you can also pad that retirement account. It is a win-win.

Educate Yourself

The finance world can be complex, but knowledge truly is power. Read books, attend seminars, and listen to podcasts. The more you know, the better decisions you will make.

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