Getting rich can be straightforward. Mostly, it requires making smart choices, like committing to paying yourself first and setting aside at least 10% of your pretax income in a retirement account, says financial adviser and self-made millionaire David Bach.
"With this in mind, it shouldn't be hard to figure out the single biggest investment mistake you can make: Not using your [retirement] plan and not maxing it out," Bach writes in "The Automatic Millionaire."
The good news is, it's easy to fund a retirement plan.
If your company offers a 401(k) plan, start there. You'll get large tax advantages, the money is automatically taken from your paychecks before you have the chance to spend it, and sometimes your employer will match your contributions up to a certain amount, which is essentially free money. The maximum amount you can contribute to a 401(k) in 2017 is $18,000 a year, or $24,000 if you're 50 or older.
If your company doesn't offer a 401(k), you can fund a traditional IRA, Roth IRA, or myRA, which all offer tax breaks and are designed specifically for retirement.