Money + Time (+/-) Rate of Return - Inflation - Tax = Wealth
Retirement saving and wealth building are a numbers game. As you look at the wealth formula, it shows you a guide to building wealth.
1. Spend less. Save more.
2. Invest your money long enough to allow interest to compound and for wealth to potentially build up.
3. The rate of return is very important.
4. Your money must earn a rate of return higher than inflation.
5. Look for investment vehicles that have tax advantages.
6. The result is your wealth: your future retirement.
Many people understand these concepts and work on it. You can do it too.
For more information please consult The Richest Man in Babylon.