To know what you need to do to reach your goal, you need only spend a few minutes with a compound interest calculator, like the one here. For example, invest $481 every month for 30 years - and earn no more or less than the average 10% long-term return of the S&P 500 - and you will have $1 million. Of course, some readers can't wait or don't have 30 years. They will have to save more or earn a higher rate of return or both. Knowing your "number" - whatever that may be - allows you to set monthly financial goals. To reach those, you may need to make lifestyle adjustments as far as spending and saving. My friend and colleague Mark Ford wrote an excellent column on living rich and building wealth. As Mark points out, scrimping isn't necessary. You need only be smart about spending. That begins with the realization that conspicuous consumption is not the route to wealth... or happiness. Last year, I had dinner in New York City with a good friend, a founder of a Fortune 500 company. He's not a billionaire, but he's closer than most. It was just the two of us and, as the wine was flowing, I asked him a personal question. "Like most highly affluent people, you have more than you'll ever spend. What is it you most want to do with the time you have left?" He didn't miss a beat. "Nothing," he said. "If I died tomorrow, I'd die a happy man, knowing I'd lived a good life, enjoyed my family and friends, achieved most of my goals and gave most of my fortune away." "But isn't there anything left that you really want to do?" I pressed, curious what that might be. "You know what I look forward to the most?" he laughed. "A good meal with close friends and stimulating conversation." How many people can't afford that? Many folks imagine that if they had great wealth, they'd spend their time flying around the country on a private plane, sailing the Caribbean on their yacht and dining in a Michelin five-star restaurant in some exotic locale. (And, truth be told, the uber-wealthy do enjoy some of that.) But more often than not, the ones I know are eager to tell me about some book they just read, some series they just watched on Netflix or some hike they recently took in the woods. The cost of these things is somewhere between negligible and zero. Too many Americans are not getting rich because they're too busy trying to look and act rich, buying luxury cars, designer clothes, and expensive wines that most wealthy individuals could happily live without and often do. Want to get rich sooner? Give up the minor extravagances, save regularly, invest wisely and fight the temptation to spend down your net worth as it snowballs. That's the most effective route to financial independence. And a smart way to live generally. Good investing, Alex P.S. Don't worry if your financial situation isn't where you want it to be. There's good news... I've teamed up with bestselling author Bill O'Reilly for The Great American Wealth Project. Join us to learn how you can move - almost inexorably - in the direction of financial freedom. Simply click here to watch. | 
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