Three Easiest Ways to Become a Millionaire in Your 20s

If you are in your 20s, and you really want to become a millionaire, here are the three easiest ways to get you there.

1. Open a Roth IRA

I'm Tyler, a former financial advisor and portfolio manager. The first step is to open a Roth IRA with Schwab, Vanguard, or any other brokerage of your choice. It doesn’t matter who you choose, and I don’t get paid to promote anyone in particular. The important thing is that you open the account.

Here's the cool part: all the money you make on your investments over the next 40 to 50 years will be 100% tax-free after age 59 and a half. Yes, that’s pretty cool!

2. Fund Your Roth IRA

Now that the account is open, you need to put money into the Roth IRA. You can do this by transferring funds from your bank account. Personally, I recommend automating this step to ensure you never forget to do it. Also, this prevents you from thinking, “This week I’d rather take that $50 and go out to eat.” Remember, that $50 is not for you; it’s for your future self.

3. Invest Your Money

Now that your account is open and funded, it’s time to do what most people do not do: invest that money. You could choose stocks, bonds, mutual funds, or ETFs. I know I can’t beat the market regularly, even as a former portfolio manager, so I invest in low-cost index funds that track the S&P 500 or the NASDAQ. This approach is diversified, easy, and cheap.

And that’s it! If you commit to investing just $50 a week starting around age 20, you’ll find yourself with a million bucks sooner than you know it. Most importantly, you’ll gain the confidence that you are in control of your financial future, taking one step closer to where you need to be.

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