For many Americans, becoming a millionaire feels out of reach — but it may be possible with the right financial habits.
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In a recent Instagram post, money expert Humphrey Yang broke down four simple habits to help you build wealth and reach millionaire status.
Knowing where you are starting from will help you to see where you need to go.
“Add up all of your bank accounts, investment accounts and asset values of any cars or homes you might have, and then subtract any debts you might have,” Yang said. “That is going to be your net worth number.”
Yang recommended doing this at the end of every month.
“You’ll establish 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 around 4.3% of their income.
“That’s really bad,” he said. “If you can get to a point where you’re saving 10%, 15% or maybe even 20% of your income, that will put you on a path to comfortable retirement and millionaire status.”
For example, if you earn $60,000 a year, saving 15% means setting aside $750 a month.
Buying things you don’t need as a show of your status is a poor use of your money.
“Everyone is so focused on buying designer goods or showing off their wealth,” Yang said. “Instead of buying that $5,000 handbag, 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’re age 50 or older.
“The Roth IRA is very powerful because any investment gains you get in this account are going to be tax-free later on in life,” he said. “You want to try to max it out 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
