For many Americans, becoming a millionaire seems out of reach, but it can be possible with the right financial habits.
See: 5 Key Mindset Shifts to Becoming the Top 1% Financially, According to Humphrey Yang
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In a recent Instagram post, money expert Humphrey Yang discussed four simple habits that will help you build wealth and achieve millionaire status.
Knowing where you are starting from will help you see where you need to go.
“Add up all your bank accounts, investment accounts, and asset values of any cars or houses you may have, and then subtract any debts you may have,” Yang said. “That will be your net worth number.”
Yang recommended doing this at the end of each month.
“You’ll set a baseline and just by being aware of your net worth, your subconscious will find ways to increase it,” he said.
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According to Yang, the average person saves about 4.3% of their income.
“That’s really bad,” he said. “If you can get to a point where you save 10%, 15%, or maybe even 20% of your income, that will put you on the path to a comfortable retirement and millionaire status.”
For example, if you earn $60,000 a year, saving 15% means saving $750 a month.
Buying things you don’t need as a token of your status is a bad use of your money.
“Everyone is very focused on buying designer items or showing off their wealth,” Yang said. “Instead of buying that $5,000 bag, invest $5,000 and you will become a millionaire much faster.”
Yang recommended contributing the maximum amount to a Roth IRA or any retirement account that can give you tax advantages. For 2025, the maximum amount is $7,000, or $8,000 if you are 50 or older.
“The Roth IRA is very powerful because any investment gains you make in this account will be tax-free in the future,” he said. “You have to try to maximize it every year.”
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This article originally appeared on GOBankingRates.com: Humphrey Yang: Do These 4 Things If You Want to Become a Millionaire