A 401(k) is one of the most powerful tools you have to help you prepare for a successful retirement. But a lot of people don't know how to maximize their money when investing in one, and financial expert Ramit Sethi says that can lead to some expensive mistakes.
"American culture doesn't help us think about investing our money. We see celebrities and Instagram posts that show us the results of being rich, but not how to get there," Sethi writes in the updated version of his book "I Will Teach You to be Rich."
Only about one third of Americans say they understand how a 401(k) plan works, according to a recent poll from ValuePenguin of over 2,000 people.
But even if there are aspects of a 401(k) that confuse you, or you can't invest a lot right now, there's one thing you should always try to do with this type of account: Make the most of any employer match.