You don’t have to make a million dollars to save a million. One way to reach that go is to save early and consistently in your 401(k). Keep in mind that the process is slow, similar to a long distance race instead of a sprint. Fidelity analyzed that data of of more than 1,000 people who have more than $1 million in their 401(k)s and earned less than $150,000. The average 401(k) millionaires are 59 years old with over 30 years working at their company. From the data we can learn five habits of 401(k) millionaires that we can utilize in our lives and to improve our 401(k) balances.
- Start saving early
- Contribute a minimum of 10% to 15%
- Meet your employer match
- Consider mutual funds that invest in stocks
- Don’t cash out when changing jobs