The No. 1 rule to becoming a millionaire in the US, according to Maria Bartiromo — will you follow or ignore it in 2025?

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The No. 1 rule to becoming a millionaire in the US, according to Maria Bartiromo — will you follow or ignore it in 2025?

The No. 1 rule to becoming a millionaire in the US, according to Maria Bartiromo — will you follow or ignore it in 2025?

Many Americans dream of becoming a millionaire, and most believe they’ll need

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to retire comfortably. While it may seem daunting, you don’t need to be a top executive, famous athlete or popular musician to make big bucks. The secret is much simpler — and perhaps more boring — than that, and failing to take advantage of this one money rule could impact your retirement greatly.

The median retirement age in the U.S. is now

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, and only 36% of Americans

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, according to a 2024 study by the Transamerica Center for Retirement Studies (TCRS) and the Transamerica Institute. About 12% of employees retired at the traditional age of 65, while most retirees (59%) retired before 65 and 30% are still working after 65.

The same study also suggests most Americans aren’t saving enough for retirement. Only 21% of those who retired did so because they had the financial means to retire comfortably, and 68% of those who retired later than planned did so for financial reasons. But working longer may not be possible for everyone. Highlighting this fact, 46% of those who retired earlier than planned did so for health reasons.

But perhaps even more concerning, almost 50% of Americans are not saving for retirement at all, according to Rachel Cruz, personal finance expert and co-host of The Ramsey Show. In a recent

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interview, Cruz said that, based on her experience, many are struggling to even find the margin to save for retirement. That’s why she says the first step is to find the margin in your budget.

According to Fox Business host Maria Bartiromo, “The No. 1 thing to do on your road to becoming a millionaire is very simple: join your company’s 401(k) plan. Put as much money in there as you can, early on, and make sure you do not touch it.”

Cruz recommends contributing to your 401(k) up to the match your company offers, if it offers one. Matching can add significant contributions to your retirement savings over time. For instance, in 2023, the median match for plans managed by

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— which manages retirement accounts for 4.9 million people through 1,500 plans — was 4.0% of annual income. The average was 4.6%, while most plans had matches between 3% and 6%.

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So, for example, if your salary is $60,000 per year and your employer matches contributions up to 4.0% of annual income, the annual contribution from your employer could be up to $2,400. After maximizing your employer’s match, Cruz recommends contributing to programs such as a

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or

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, which have tax-free withdrawals in retirement.

Read more: Jeff Bezos and Oprah Winfrey

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— you may want to do the same in 2025

For many younger people, retirement seems a long way off — especially when they have more immediate needs for their money. But Cruz says you need to adopt a “long-term mindset.” To build financial security and start on the path to becoming a millionaire, she recommends first paying off your debt and then creating an emergency fund that equals about three to six months of expenses.

Once you’ve made it this far, you can then start putting 15% of your income into retirement, starting with a 401(k) if it’s available to you. She says it’s important to contribute to the plan consistently and avoid pulling any money out, even if the market is down.

Waiting for the perfect entry point will

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, according to Charles Schwab, and time out of the market could hurt your returns. To put this into perspective, research by

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shows that if you invested $10,000 in the S&P 500 Index on Jan. 1, 1980 but missed the best five days in the following years, you’d miss out on $411,258 of potential returns by Dec. 31, 2022.

It’s a not-so-secret rule that starting early and regularly contributing to your 401(k) — and not touching the money until you retire — can start you on the journey to becoming a millionaire. And, like any journey, it all starts with taking the first step.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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