Where to get millions of dollars

Once these expenses have been covered, the next step should be to fund a retirement plan or some other tax-advantaged vehicle. Unfortunately, retirement planning is an afterthought for many young people. How much difference will funding a vehicle such as a Roth IRA early on in life make? Now, suppose that you wait an additional 10 years to start contributing. But by starting to save later, your compounded earnings won't have as much time to grow. Sometimes, individuals think that doing their own taxes will save them money.

In some cases, they might be right. However, in other cases, it may actually end up costing them money because they fail to take advantage of the many deductions available to them. Try to become more educated as far as what types of items are deductible. You should also understand when it makes sense to move away from the standard deduction and start itemizing your return. However, if you're not willing or able to become educated about filing your own income taxes, it may actually pay to hire some help, particularly if you are self-employed, own a business, or have other circumstances that complicate your tax return.

Many of us rent a home or an apartment because we cannot afford to purchase a home, or because we aren't sure where we want to live for the long term. And that's fine. However, renting is often not a good long-term investment because buying a home is a good way to build equity. Unless you intend to move in a short period of time, it generally makes sense to consider putting a down payment on a home.

At least this way, over time, you can build up some equity and the foundation for a nest egg. There's nothing wrong with purchasing a luxury vehicle.

However, individuals who spend an inordinate amount of their incomes on a vehicle are doing themselves a disservice, especially since this asset depreciates in value so rapidly.

How rapidly does a car depreciate? In short, especially when you are young, consider buying something practical and dependable that has low monthly payments or that you can pay for in cash. In the long run, this will mean you'll have more money to put toward your savings, an asset that will appreciate , rather than depreciate, like your car. Some individuals are extremely loyal to their employers and will stay with them for years without seeing their incomes take a jump.

Starting a successful business can make you a millionaire or even a billionaire, if you create the next Facebook , but the risks are high. About half of all new businesses fail within the first five years. Your chances of success are greater if you start with a well-thought-out business plan that outlines your competitive strategies and your goals.

You should also have a plan in place to scale up—which usually means being bought out by a larger company, selling franchises or licensing your product.

Keep good records, create an operations manual and develop a diverse group of customers. You can get free advice from more than 11, small-business volunteers through Score , a nonprofit organization supported by the Small Business Administration. Self-starters who want a template for their business can purchase a franchise. Franchisors may also provide training, advertising and help finding a location.

Successful franchisees often have more than one store. Several websites rate franchises, including Franchise Business Review. Employer-provided retirement plans offer the best route to success. Contributions to a k are pretax, which lowers your taxable income. Money inside the account grows unfettered by taxes, which boosts your annual return. But that will leave you short of your goal. Another benefit that could be worth a lot more than you think: a health savings account.

To qualify for an HSA, you must sign up for a high-deductible health insurance plan. Over time, contributions to an HSA can add up because HSAs offer a triple tax advantage: Contributions are sheltered from income taxes, the money grows tax-deferred, and funds can be withdrawn tax-free in any year for medical expenses. To truly tap the power of an HSA, use money outside of the account to pay medical bills and let the money in the account grow.

After you sign up for Medicare when contributions to an HSA are no longer allowed , you can reimburse yourself for any eligible expenses you incurred after you first opened the HSA, plus pay for retirement health expenses—including long-term care.

Even people who live in modest homes, drive used cars and go camping on their vacations can undermine their thriftiness by committing money missteps. A better strategy: Select a college your family can afford without racking up debt—or encourage your children to take out federal student loans as long as you keep a lid on the amount.

Paying more than you owe to the IRS is another mistake that could leave you short of your goal. Homeowners typically benefit most from itemizing, but renters who pay high state income taxes and make large charitable contributions could also save money if they itemized. And those savings could help to grow your million-dollar kitty. Taxes may also hobble your investment returns, particularly in your taxable accounts. Creating real security requires saving a lot more than you think.

It's also expensive to continue growing a business after it's successful. That's why I'd invest. Invest in what you know — and have a vision for it. You can even invest emotionally. With real estate, for example, I always pick somewhere I would live if everything went bad. Whatever approach you choose, pick something you love.

I believe that if you love something, you'll be good at it. Then search eBay's 'sold' listings to see what they're worth. If there's a large enough price difference, buy it and sell it on eBay for a profit. And you're probably right. Then comes the hard part. You have to save what you made. When I was in my 20s, I didn't go on vacation or buy fancy things.

I saved my money instead. And by the time I was in my 30s, I had hundreds of thousands of dollars. Then I invested those hundreds of thousands — and they made millions.

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