Despite difficult economic conditions, the United States continues to produce more millionaires. The total number of American millionaires doubled from 2020 to 2023, reaching about 22 million individuals.

How has so many people reach this important financial milestone? It was not through timely trends such as going to Crypto or launching an application. Most people are getting the American dream to prioritize their retirement savings.

First, we delete what it means to be a millionaire. Of course, being a millionaire means that you have accumulated at least one million dollars, but there is a little more nuances than that.

By definition, a millionaire is someone of whom Clean value It is at least one million dollars, that is, the total value of all its assets (cash, property, investments) less your outstanding debt is $ 1 million or more. The term is quite wide because it includes anyone with assets of at least $ 1 million but less than $ 1 billion.

Being a millionaire means you are ready for life? Not necessarily. In the past, being a millionaire meant that it was rich, but the value of $ 1 million has been reduced over time due to inflation. For example, you would need more than $ 1.6 million by 2025 to have the same spending power you did with $ 1 million in 2005.

Being a millionaire also does not guarantee happiness. According to one studyHappiness comes when salary reaches $ 100,000 a year.

However, increasing your net value can help you overcome financial challenges, as according to Social Security as the only source of income during retirement. It can also give you a greater sense of autonomy over your circumstances.

Read -Ne More: How much money are you considered rich?

What is the safest way to accumulate $ 1 million? Most people who become millionaires in the United States come to this milestone in a very simple way: making automatic contributions to a retirement account of each payment for many years.

Surprised to hear that? This method certainly does not have the attractiveness of a triumph, but here are some reasons why consistent retirement contributions work so well:

• Underestimation: Automatic contributions Each payment will help you prioritize saving money and teach you to live less than your full income.

• Header maintenance: The constant investment helps you to see the largest image and reduce the temptation to make impulsive (and expensive) movements based on the headlines and the trends.

• Free money: Many retirement plans come with a party of businessmen. In other words, when you contribute, your employer puts free money into your account.

• Risk -based adjustments: Most retirement plans automatically adjust your portfolio based on your age and when you plan to retire, also known as target dates investment.

It may seem opposite, but there are certain financial goals that must be prioritized for retirement savings.

If you bring debt of high interest (ie credit cards), pay them as soon as possible. When you do, you will delete high interest costs that eat investment returns on your retirement account.

Then enter money in emergency savings. In this way, you will not be tempted to withdraw from your retirement account when a financial emergency appears.

Read -Ne More: How much money should I have in an emergency saver account?

The sooner you start contributing to your retirement account, the longer your money has to grow.

If your employer offers 401 (K) or another retirement plan, register -you immediately and set up a recurring contribution of your payment, even if it is a small amount, if you have access to an employer party, even better, as this allows free money in your retirement savings.

If your employer does not sponsor a retirement plan, you can open a solo 401 (k) and/or an anger.

Read -Ne More: 401 (k) vs. Anger: differences and how to choose what are yours

If you want your retirement savings to be worth a million dollars at the age of 65, here is about the amount you need to contribute to each age (assuming an average return of 8% and not including plan rates):

If you have doubts to put money in retirement, start in Petit. Then you aim to increase your contribution at least once a year. Here are some ways to ensure -you can do:

• Income increases: Make it a goal to increase your income annually, either through a wage rise, a promotion, side traffic or changing jobs. Continuing education can also help, as obtaining a degree is strongly correlated with revenue growth and net value. However, increase your income, ensure -increase your retirement contribution instead of your expense.

• Lower Expenses: Whenever the expenses decrease, automatically send the additional money to your retirement contribution. For example, if you have a car loan with a payment of $ 250 per month, add this monthly contribution of 401 (K) after paying the loan.

Ideally, you want to contribute the maximum amount allowed each year. For 2025, the maximum contribution for 401 (K) s, 403 (B) and Prosperity Savings Plans (TSP) is $ 23,500 for people under 50,500 $ 30,500 for 50 -year -olds.

When you change work, don’t forget to make retirement savings with you. Of course you can leave your money in the account provided by your former employer, but there are important advantages to reach a new 401 (k) or anger, including:

• You may have to pay higher rates in the old account after leaving the employer.

• You can no longer contribute to the old plan.

• You will have less accounts to manage.

• You can avoid any problems to access the old plan.

Investing in retirement is the main way that North -Americans build wealth, but it is not the only way. Another great engine for the growth of net value is to have a primary residence.

Buying and having a house is not cheap; You will need to cover an initial payment, closing costs, maintenance of property and more. But it can bear fruit in the long run.

If you don’t have enough money to buy a house, look at First -time programs with housing purchase (FTHB) Through your state or a local agency. Whenever you have not possessed your residence for the past three years, you could get FTHB assistance.

Read -Ne More: Do you save a house? This is where you have to park your money in the payment