"Slow and Steady wins the race"

Who hasn't heard about the importance of being steady even if you are slow? It very well applies to the financial market.

Who doesn't want to be a millionaire? This is a living dream that we see even when we are wide awake. It is not impossible to be a millionaire. One can realize this dream with perseverance, and time tested formula of discipline and regular savings.

Imagine you save $100 every month ($1200 every year) in a low cost index fund (Vanguard 500 index fund that has an average return of around 12% annually since 1976 (the year this fund was created). How much do you think you will have at the end of 20yrs?

You will have a whopping wealth of more than 120K. Just imagine what you can get by saving a little more every month.

So here are the steps for you to become a millionaire:

• Sign up for monthly contribution to a low cost index fund either from Vanguard or T. Rowe Price. You can contribute as low as $50 every month and remember every little drop counts for the big million.
  
• Start saving as early as possible. Not saving for one year can cost you thousands in terms of savings at the end of 20years.
  
• Make sure you are taking full advantage of your employer's 401(k) plan. Try to max it up and for sure invest as much as the employer is matching. It's free money for you and you should never let it go.
  
• Having invested in 401K and other investment account if you still have money to invest buy yourself a roth IRA or simple IRA depending upon your income. You can't invest in Roth IRA if your AGI is more than certain limit. Consult your CPA for that.
  
• Stash up your three to six months saving in a bank account that gives you good interest rate. My favorite is INGDirect but you can shop around at bankrate.com.
  
• Every dollar you save today and invest in a good low cost mutual fund has the potential of becoming 10 times at the end of 30 years. Saving and investing $100 translates to around $1,000 at the end of 30 years. So save as much as you can.
  

With these 6 steps you can surely lead yourself to the path of walth and become a millionaire by the time you retire. Trust me it's not so far as it seems. So start saving and see your money grow.