How to Make A Million Dollars Saving and Investing

by Contributor ; Updated July 27, 2017

Knowing how to make a million dollars saving and investing will help you to retire rich. Have you been wondering how to make a million dollars by slowly and steadily saving money and investing it? You can make a million dollars without a get rich quick scheme. Be the tortoise because slow and steady wins the race.

Step 1

Start Young

Start saving immediately. It is important for you to start saving when you are as young as possible. If you can start saving and investing at age eighteen, it will be easier for you to make a million dollars.

Of course you can start investing at any age, it is never too late to start saving and investing your money.

Look below in the Resources section if you want to make a million dollars.

Step 2

Save Regularly

Save money out of each paycheck. Do it automatically. Even if the amount is small. Take a portion of each paycheck for investing. Take another portion of each paycheck to build up a cash reserve.

Many banks offer automatic deposits into your savings account. Set up an automatic deposit that transfers money to your savings account immediately after you receive each paycheck. Do not wait until the end of the month to see what is left.

Step 3

Invest Wisely

Learn how to invest. Invest in safe stocks, bonds and mutual funds. Take investing seriously. Do not invest in anything that you do not understand fully.

There are many online resources that will teach you how to invest for free. If you are unsure about an investment, leave your money in your savings account until you are ready to invest.

Set guidelines for yourself that you always follow. For example decide ahead of time the maximum amount of money that you will invest in any one investment. The amount may be $200 dollars or $2,000 dollars, you decide and stick to your plan. It is better to be diversified in investments than to lose everything in one bad investment.

Step 4

Cash Reserves

Keep a cash reserve on hand that is equivalent of six months of your salary. If you do not have that much money on hand, start saving it until you have reached your goal.

Building up your cash reserve does not stop you from investing. Just take have of what you will save each month and put it towards your cash reserve. Take the other half of your monthly savings and put it in a safe investment.

Step 5

Find Support

Find a mentor, support group or website that can help you with investing advice. You will need to have people available that you can ask questions.

You can make a million dollars fast if you put your mind to it and you are diligent about your saving and investing money.

If you want more information on how to make a million dollars saving and investing, please look below in the Resources section.