Self-Made Millionaire Shares Best Investment Tip For People In Their 20s Who Want To Get Rich

Becoming a self-made millionaire may seem like an overwhelming task for many young Americans, but there are some practical steps anyone can take to make that seven-figure dream a reality.

Ramit Sethi, self-made millionaire and star of Netflix’s “How to Get Rich,” says the smartest thing young professionals can do to build wealth over time is to start investing early and be consistent with building their nest egg.

"My best advice for people in their 20s when it comes to money is to set up an automatic investment," Sethi recently told CNBC. "If you are in your 20s, you have an amazing opportunity, even if your earnings are not that high, to set up your habits right."

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Young professionals can start by making annual contributions to retirement accounts, such as 401(k) accounts or individual retirement accounts (IRAs). These retirement accounts can have significant tax advantages that allow your investments to grow tax-free until you withdraw your funds.

Salary Isn't Everything: One of the most powerful tools in building wealth is compounding returns and interest, and these forces produce more results the longer they are utilized. Compounding interest and reinvested dividends essentially let your money work for you, generating profits not only on your initial investment but also on your returns on those investments.

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But while he urges young professionals to take a responsible financial approach to the future, Sethi says your 20s should be about more than just making money.

"Don’t try to be 40 before you’re 40," he says. "Your 20s are about getting to know yourself, going out with friends, taking cheap trips — I think you should do that."

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