How to Become a Millionaire Before Your Friends: 3 Essential Steps

Want to become a millionaire before all of your friends do? Then you need to do the following three things, starting right now.

1. Open Up a Roth IRA

Do this through Fidelity, Schwab, or Vanguard, and it'll take you five minutes. It's not some binding commitment, as you can take back your contributions at any point in time if you change your mind, because the account is funded with post-tax dollars.

2. Automate Contributions

Automate contributions to your Roth IRA, contributing $50 to $100 a month. If you deduct those contributions directly from your paycheck, you never have to see them, and you'll learn to live on less. Probably the single most valuable wealth-building tool you could ever have in your life is just learning to live on less.

3. Invest Wisely

Once it's in that Roth IRA, it’s just sitting in cash, and you need to invest it. I'll never tell you how to invest it because every single one of us is different, but Jack Bogle, the former CEO of Vanguard, would recommend that you consider looking into a U.S. stock market fund, an international stock market fund, and a total bond market fund. That way, you've invested in just about the entire world.

Obviously, I can't make you do it, and I don't really want to make you do it because it's your choice, but if you really do just start today, you'll get there.

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