Three Simple Steps to Become a Millionaire Before Your Friends

If you want to become a millionaire before all of your friends, 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. It’ll take you just 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

Set up automatic contributions to that Roth IRA, starting with $50 to $100 a month. If you deduct those contributions directly from your paycheck, you’ll never have to see them, and you'll learn to live on less. The most valuable wealth-building tool you could ever have is just learning to live on less.

3. Invest Your Money

Remember that once the money is in your Roth IRA, it’s just sitting in cash. You need to invest it. While I will never tell you exactly how to invest, many experts, including Jack Bogle, the former CEO of Vanguard, recommend considering a combination of a U.S. stock market fund, an international stock market fund, and a total bond market fund. This way, you've invested in just about the entire world.

Of course, I can’t make you do it, and I don’t really want to pressure you. It’s your choice. But if you truly start today, you’ll get there.

Source