How to Succeed By Telling Stories

Murray Nossel wants to bring companies together by getting people to talk about themselves.

In 2007 a hundred people from 48 countries sat in circles in a building in Cyprus and began telling stories in the voices of their grandparents. They were all employees of the Walt Disney Co. ( DIS - news - people )'s emerging markets team, and they were following instructions from Murray Nossel, a South African clinical psychologist. Nossel has started Narativ, a business that trains employees by getting them to tell stories. He says he got a decidedly mixed reaction from that crowd of Europeans, Africans and Asians.

"Some thought it was absolutely brilliant, some thought it was violent," says Nossel, 49. "For the Indians in the group, an oral tradition was very familiar. For the northern Europeans, it was like bringing the devil into the room."

For many of the Europeans the tales involved relating difficult, long-buried anecdotes about World War II to near strangers. "They found that we all have something in common," Nossel says. "We all have grandparents. It helps us relate. It's so easy to recognize only our differences."

The "grandparent story" is one of the principal tools Nossel and his team of psychologists, teachers and executive coaches use to help companies like Disney get their staffers listening to and communicating with one another. He believes that storytelling can be the key to bringing together a disparate workforce, especially one from around the globe. Narativ is a young company with a permanent staff of only four and annual revenue of about $250,000, but it's growing fast. It started working with corporations in 2007, but it already has big-name clients besides Disney, including HBO, Radisson, Unicef and George Soros' Open Society.

Nossel formed Narativ in 2000 with Paul Browde, a fellow South African transplanted to New York. The two had a long, troubled story of their own. They had met in school in Johannesburg, where Nossel remembers Browde "humiliating" him in front of their class when they were 15, calling him a "faggot." Twenty years later their paths crossed again, when they were both running with the same New York theater crowd. Nossel was a playwright, an Oscar-nominated documentary filmmaker and a clinical psychologist. Browde was a psychiatrist with drama school training. Both were then openly gay. "When we reconnected, we realized we'd led parallel lives," Nossel says.

The two started performing a play together, Two Men Talking, based on their unusual path to friendship. It's essentially live storytelling, and they improvise, making the show different each night. It has taken them to London's West End, Off Broadway and Johannesburg. At the same time they started that, Nossel was finishing up fieldwork for his psychology Ph.D. by counseling AIDS patients in Brooklyn. His job was to help them come to terms with their impending deaths. 

"When people died their belongings were packed into black garbage bags, and nobody came to claim them," he says. "There was a sense of leaving nothing behind. For them to tell their stories was really important." He started getting them to narrate their life stories, though many--crack addicts, the homeless--insisted they had no stories to tell. Soon many began requesting VHS tapes so they could leave something for posterity.

Nossel and Browde cofounded Narativ in 2000 to teach anyone else how to tell their stories effectively. They first offered workshops for the general public and then programs for charities, schools and nonprofits. Nossel landed his first corporate client in 2007, thanks to a business school connection of a onetime intern, Jerome Deroy, who now oversees Narativ's corporate programs.

Browde has since taken a backseat, and Nossel has hired a senior adviser to help adapt his workshops for each corporate client. Bob Fitzpatrick, the adviser, has a long history as a senior executive, having been director of the Museum of Contemporary Art in Chicago and dean of the School of Arts at Columbia University. Former Walt Disney CEO Michael Eisner hired him to launch Disneyland Paris in 1987. That involved overseeing a nascent management team that mixed Americans, French, Luxembourgers, Belgians, Indians, Brits and Spaniards. They had so little in common they could barely communicate. "The American expats assumed people shared their cultural frames of reference," Fitzpatrick says. "They didn't." He got them all cooperating by telling them stories to explain Walt Disney and the company's history.

Fitzpatrick learned about Narativ when he saw Two Men Talking last year, and he was entranced by the notion of teaching storytelling as a communication tool: "I thought, 'I'd have given my soul to have this when I was running Euro Disney.'" He attended one of Nossel's workshops for the general public, which cost $240 for seven hours of training, and he says he had to suspend his natural skeptic's disbelief to see the benefits. It wasn't the storytelling itself that won him over; it was how well the participants listened to one another.

"People were really listening--leaning in, not playing with their BlackBerrys or iPhones," he says. As a CEO he had noticed how in meetings his employees would pay attention to him and no one else. "From a CEO's point of view, getting people to really listen to one another is a gift from the gods. Then they'll work together much more effectively."

Fitzpatrick is helping Nossel tailor his workshops for two new corporate clients, one of the world's largest data analytics firms and a big life insurance company. In recent weeks they have met with human resources representatives and executives from both to conduct what Nossel calls an "ethnographic assessment" of how people at their companies work and communicate. "What we do with an insurance company that needs help selling a product is very different from what we do with a financial institution," Fitzpatrick says.

 

Narativ also trains charity workers to better communicate with those they try to help. "When you go into the Amazon and interview a kid about a human rights violation, you have to know how to collect that story without causing harm," Nossel says.

Alana Dave, the education officer of the International Transport Workers' Federation, turned to Nossel to teach truckdrivers and port workers in Mombasa, Kenya, to speak openly about AIDS, a huge problem in that part of Africa. That workshop led some transport workers to come out as HIV positive and others to overcome longstanding fears of being tested.

In the corporate world HR directors are finding other applications for Narativ's storytelling training, including crisis communications. Anna Tavis, who was the head of executive talent at American International Group ( AIG - news - people ) during its bailout crisis, has met with Narativ and says, "The human collateral of that crisis--we don't even yet know what it is. We haven't done the healing. That's where I see the power of storytelling coming in. To a large extent, it determines how we see ourselves. 

In New York, in financial services, people have to reframe their stories."

Despite all his satisfied clients, Nossel knows there will continue to be skepticism in the corporate world about anything that seems so touchy-feely. Fitzpatrick is on hand to keep a wary eye on Narativ's programs for that reason. 

At the start of his workshops Nossel describes some of the science of how people communicate, and he makes the point that storytelling is nothing less than the basic way humans understand the world and convey that understanding. "Our brains are hardwired to recognize stories and want a resolution," he says. Companies that lose sight of that fact, he believes, do so at their own peril.

Clare O'Connor                                                                                                                              

Forbes Magazine.

        

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7 Uncommon Ways to Save for the Holidays

Families who've been hit with unemployment, foreclosure and higher credit card fees are tightening their belts and coming up with creative ways to save money on holiday gift giving.
Ideas such as taking no-spending months, giving the gift of manual labor and using accumulated credit card reward points to buy gifts are ingenious ways that folks can save on gifts.
Here are some nifty and resourceful ways people are saving for the holidays.
Stop Spending for Two Months
If you stop spending, you'll be able to save money for the holiday season. Bills and other household expenses might make it seem impossible, but it's not.
Danielle Marquis, adjunct professor of personal finance at Red Rocks Community College in Lakewood, Colo., suggests a compromise. "Institute two 'months of nothing' into your year, and divert all the money you save directly into a savings account titled 'Holidays,'" she says.
"When I say a 'month of nothing,' I mean you don't spend money on anything that isn't an absolute necessity. You pack your lunch for work and road trips, bring reusable water bottles to work instead of buying something from a vending machine and meet up for potlucks at friends' houses," Marquis says.
Pick any two months throughout the year to put this idea into practice. Marquis says January is easier for her, because she commits to a self-imposed detox after the excess of the holidays; and June is easier too, because it is her birthday month.
"People tend to do nice things for me to celebrate, so it's easier to do without," she says.
Get Rewards Points Through Recycling
Make the most of your old electronics by using a rewards-through-recycling program and save money. Through these eco-friendly programs, like MaxBack.com or RecycleBank.com, you exchange used cell phones, MP3 players, cameras and GPS navigation units for points toward the purchase of other items, including gift cards. At MaxBack, you can even donate your points to schools and nonprofits.
"It's important for us to reuse and recycle," says Sean Michaels, co-president of MaxBack.
The Environmental Protection Agency says old electronics generate about 3 million tons of waste each year, or almost 2 percent of the total amount of trash. About 2 million tons of the electronic trash ends up in landfills.
Gift Your Skills
Are you good at fixing things? Do you cook? Can you build a kitchen cabinet?
A good way to give a great holiday present without spending much is by donating your skills as gifts. "Wrap your skills in a thoughtful way as an alternative to buying your friends another gift card," says Farnoosh Torabi, personal finance expert and author of "Psych Yourself Rich."
She says if you're a great designer, offer to redecorate a room in your friend's house for free. A software whiz? Build a website for a friend or sketch out a plan for a new blog. A photographer? Offer a photography lesson or take and frame some portraits of friends or family, Torabi says.
These are useful and meaningful gifts that can not only save money, but also help your family and friends stretch their dollars.
Put Together a Christmas Closet
What do you do with all the extra holiday wrapping paper, gift bags and unwanted gifts from last year? Instead of throwing them away, Billee Sharp, author of "Fix It, Make It, Grow It, Bake It" has a better alternative.
Sharp says, "I have a Christmas closet where I put gifts I cannot use, and gift bags, paper, etc., to reuse and give out for the holidays."
When the holidays comes around, instead of first going shopping, make sure you take a good look at what is in that closest. You just might find an item you can give away or a nice gift box you can reuse. Either way, you save money.
Give the Same Gift to Everyone
If you regularly give to the people who help you run your life better — your cleaning professionals, doorman, plumber or grass cutter — give them a useful gift to show your appreciation while you save money.
Find out their particular interests in hobbies and buy them magazine subscriptions. Some annual subscriptions are less than $10. Or make a small donation to their favorite charities.
Use this same tactic with family and friends. Michelle Girasole, co-author of "The Sassy Ladies' Toolkit for Start-up Businesses," says she buys almost everyone on her list the same gift because it saves her time and money.
"Last year, I bought little journals off the Compendium catalog website (live-inspired.com). They cost less than $10 each because I had a wholesale account! I wrote something complimentary about each person on the first page," Girasole says. "What a big hit!"
Move the Holiday
Although tradition says otherwise, holidays don't have to be celebrated on their designated dates. Moving the holiday to a different date on the calendar can help you save money.
"Move your family's Christmas celebration from Dec. 25 and closer to Jan. 1," says Carrie Rocha, publisher of the Pocket Your Dollars website.
"When you buy presents, this is one of the best ways to take advantage of all the after-Christmas sales. It saves you a bundle, especially if you buy lots of toys for nieces and nephews or have big lists of people to give to," Rocha says.
Save Credit Card Reward Points
Using credit cards has its advantages — and if you have been using them throughout the year, make sure they are low-cost cards that offer rewards points. One way to save money is to use up these accumulated points to buy gifts for the holiday season.
Sarah Caron, writer of "Sarah's Cucina Bella" blog, says she and her husband plan ahead and put bigger purchases on their credit card during the year. That way, they pay it off and still earn the points.
"It usually amounts to several hundred dollars in gift cards for different stores that we use to purchase gifts," Caron says.
Tyler Tervooren, author of the "Advanced Riskology" blog, agrees. "My strategy this year to save was to target my credit card spending and only use high rewards-earning cards that I can then take points, miles or cash back to pay for fun holiday expenses," he says.
Ana Gonzalez Ribeiro

The World’s Youngest Self-Made Billionaires!

Billionaires are getting younger! These young billionaires stand out amongst hundreds of billionaires in their age group. They are different from those that inherited their billions, because they started their own businesses and built them from ground up to reach the peak.

Marc Zuckerberg – United States, Age: 23

Facebook has attracted more users than any other site can boast of. The founder is a young boy born on May 14, 1984 and named Mark Elliot Zuckerberg. This sky and reserved kid has an unparalleled brilliance. According to Forbes magazine, Mark Zuckerberg is the youngest billionaire in the world for 2008.

He was born in a Jewish family and his father is a dentist. From his early years, he loved hacking into computers and wrote his own programs. He studied at Harvard, and the idea that brought him fame and money, a social networking site, was born in his dorm at Harvard, and the rest is history. His idea took fruition as Facebook, gaining unprecedented fame. He and his friend Andrew McCollum along with two other roommates, Dustin Moskovits and Chris Hughes started Facebook. Mark is the CEO of Facebook and his net worth is said to be $1.5 billion.

Zuckerberg is the person responsible for the overall direction and product strategy for Facebook. He currently leads the design of Facebook’s service and development of its infrastructure and core technology.

He studied computer science at Harvard University and while he was there, he created a website called Facemash, that compared students’ dorm pictures kept side-by-side, to see which one is better looking (hot or not.) It was about a few months later that he launched Facebook. He also won the Crunchie Award in 2007 for the “Best Startup CEO.”

Xiaofeng Peng – China. Age: 34

Xiaofeng Peng is a self-made billionaire with an estimated worth of $1.5 billion. Solar energy has been his ladder to success and wealth. When Peng was pondering the next move of his career, he realized that renewable energy is the future. Initially, he started out with a trading company in 2005, and it grew immensely to become one of the fastest growing suppliers of Chinese-made solar wafers in the world. These solar wafers are used in solar panels. His company, LDK Solar has also been listed on NASDAQ since 2007.

He graduated from Jiangxi Foreign Trade School in 1993 and went on to earn a diploma in international business from Beijing University Guanghua School of Management as well as an MBA degree in 2002. Prior to founding this company, he also founded Suzhou Liouxin, which is a leading manufacturer of personal protective equipment in Asia.

Xiaofeng Peng is also fluent in Japanese and traveled America and Europe extensively. He is a man with a big vision and has built a company of more than 12,000 people, which continues to grow. As part of his next phase of expansion plans, LDK Solar has recently given a $220 million contract to Applied Materials Inc., for providing precision wafering systems.

Peng states that he aims at making his company the largest and the most economic silicon wafer supplier in the world and he intends to do that both in terms of market share and sales volume.

John Arnold – United States. Age: 34

John Arnold was a go-getter from a young age. He is on the list of current self-made billionaires and his net work is estimated to be $2.5 bil.

His father was a lawyer and mom was an accountant. He graduated from Vanderbilt University and after his studies, went on to work for Enron.

He was 27 when he used Internet-based trading network to earn $750 million for Enron in 2001, when he was an oil trader for the company. He was rewarded $8 million in bonus. 

A year later, when Enron collapsed, he went into business himself and founded the hedge fund Centaurus Energy Advisors, LLC, based in Houston, Texas. For this, he is said to have used his $8 million bonus and other funds from selling his Enron stock just before its collapse.

Sameer Gehlaut, India. Age: 34

Sameer Gehlaut whose net worth is calculated at 1.2 bil, is the youngest and the 45th richest in India, and one of the youngest billionaires in the world. He established Indiabulls in 2000. His first step was the acquisition of Inorbit Securities, a stock brokerage company in Delhi. The group initially operated from a small office with a tin roof, near Hauz Khas bus terminal in Delhi. All they had was two computers. Fast forward ten years and the tin roof transformed in to a beautiful building on a 4000-acre land and the company has become one of the leading financial services and real estate companies in India.

His educated consisted of a Mechanical Engineering degree from IIT, Delhi in 1995. As a young boy, he worked for Halliburton in the United States. He returned to India and started an earth moving and mining business, which is now taken care of by his family.

He laid the foundation to his success when he started Indiabulls in 2000, when he was just 26 years old. He had help in the form of his two friends from IIT, Delhi; Rajiv Rattan Mittal and Saurabh Mittal, who are said to have a net worth of $500 million each. Indiabulls’ interests include consumer finance, mortgages, real estate, retail and power. The company’s market capitalization is a huge Rs. 25,000 crores.

Larry Page, United States. Age: 35

Page is a self-made billionaire and there cannot be anyone on the internet who hasn’t heard of him. He is the founder of the largest search engine, Google. He is ranked high on the list of billionaires with an estimated net worth of $18.6 billion.

His background constituted of a computer engineering degree and a masters degree from Stanford University. Before completing this degree, he launched Google in 1998, along with his Russian born classmate, Sergey Brin, whose worth is said to be $18.5 billion. There is a small story that makes the rounds, saying that the two friends initially disliked each other until they eventually got closer due to their mutual interests. They even co-authored “The Anatomy of a Large Scale Hypertextual Web Search Engine,” which is like a bestseller in the web world.

Google proved to be an extremely successful venture that has seen an increase in revenue exponentially. At Google, Page holds the title of the President for Products. Since Google went public in 2004, there was a huge increase in business. He is said to make a lot of money from the well-known online advertising program, Google AdSense and Adwords. Apart from Google, he also invested in Tesla Motors, which is in the process of developing a battery operated vehicle.

The much-appreciated fact is that Page manages a $1 billion philanthropic organization and is known to spread his wealth whenever possible.

Fortunes are made from being passionate about dreams. These self-made billionaires suggest that hard work, talent, the right attitude along with plenty of luck seem to be the vital ingredients to their huge success.

by Hasan

Source: Internet.

The GiftThe GiftThe Gift  Kindle Wireless Reading Device, Wi-Fi, 6" Display, Graphite - Latest Generation Avatar (Three-Disc Extended Collector's Edition + BD-Live) [Blu-ray]

Start Your Own Small Business

Wouldn't it be great to be able to quit your job, be your own boss and earn a paycheck from the comfort of your own home? The good news is that with a little planning and some startup money, it is possible!

Let's delve a little deeper into how to start a small business from home and help you decide how much planning and money you'll need to be your own boss.

Creating the Concept
Before quitting their jobs, the potential entrepreneurs must first think of a concept, product or service to generate a steady income. And while that may sound easy, it's not. You should conceive a plan that puts your knowledge, experience and expertise to use but in a way that allows you to make the most amount of your money.

When first thinking of some business ideas, start with areas you already have a great deal of interest, equipment and materials for. This will help cut down on the startup costs for your company and also let you hit the ground running when you do hang out your shingle. Also, peruse the local paper and advertisements to see what other types of businesses are out there. Are there other similar businesses in your neighborhood or is there a business area that is lacking?

Doing something you like isn't the only consideration. You need to get an idea of the prospects for the potential business. Is it a business with a market? Can you make money at it? This will require some research into the marketplace as well as how other similar businesses have fared.

Developing a Work Space
Your home is where you live. This means that its primary function is to serve as a dwelling for you and your family - not as a warehouse or meeting place for your business and its clients. Make certain that if you are considering entering the manufacturing business (for example) that your garage or shed is large enough to handle your work - without forcing your family and your vehicles into stormy weather.

Similarly, if your work will be computer-based, make sure that you have the technology necessary to give your idea a fighting chance. In addition, make sure that you have a dedicated area that's cut off from the rest of the house and that can afford you some privacy. Remember, hearing a barking dog or a crying baby in the background when you are trying to work or meet with a client may not be ideal for you or your family.

Outsourcing Partners/Employees
While it would be great to be the sole owner of your company and have complete control of every aspect, sometimes a lack of funds or experience make it necessary to have a partner. In this case, consider someone that is bright, will represent the company well, and has some sort of expertise in the business you are developing, be it sales, marketing, book-keeping, or other financial matters.

Also, try to define the tasks that you and your partner(s) will be responsible for before opening up shop. That way, there will be fewer disagreements and the business will operate more smoothly. Also, make sure that all partners are legally cared for by the company, and that the proper forms are filed with the regulatory authorities - this may mean filing twice and paying for title changes if you need to find a new partner, but it will protect both of you in the long run.

Next, decide if you'll need employees - whether now or in the future. If so, put some thought into how you will get them and what you will pay them for their work. Also, think about how you'll do payroll, and whether people will want to work from your home, from their own homes or if you'll need to find another facility to house them.

Doing Your Research
Some books on forming a small business suggest that after hatching an idea, an entrepreneur should just "go for it." However, this bold approach could land you in some shaky territory.

Instead, a good first move is to start asking family and friends what they think about your small business idea. Consider asking them specific questions such as:  

• Would you purchase this particular product and/or service?
• What do you think its worth?
• What is the best way to market the idea?
• Is this something that you think is a fad, or do you feel it could be a viable business for the long term?
• Is there anything you can think of to improve this idea?
• What other businesses in this field have you heard of or do you currently use for this product/service?

If you're married and/or have kids, you should also be asking your family how they feel about you quitting your job and working from home. This will affect them on a psychological and financial level. If any of their answers are negative, you should spend some time discussing their concerns and decide whether your goal is worth continuing against their wishes.

After obtaining all of this feedback, go back to the drawing board and see if the idea can be improved upon so that your product or service can be differentiated from the competition. Remember, you want to hit the ground running and turn as many heads as possible when first starting off!

Finding Funding
Once you have an idea and the approval of your family, you need to decide how you are going to finance it. Most businesses will need at least a little startup income. This investment will hopefully help you break even after a year, but keep in mind that even successful businesses can remain in deficit for the first few years. Because of this, you will want to tap into a few different sources of funding. Some of these include:

• A small-business loan
• Savings
• Money generated from other investments
• Family/friends who will act as investors
• Personal loan from the bank
• Home equity loan
• Credit cards (as a last resort)

Source capital that won't hamper your longer-term security. In other words, try to avoid racking up costly credit card debt that could cost 20% or more in yearly interest fees. Also, try to avoid borrowing against your 401(k) or other similar plans as this may adversely affect your retirement.

Finally, one of the best things you can do before you take the entrepreneurial leap is to build up an emergency fund to fall back on if your company doesn't break even for a few months. Three months of living expenses is a minimum goal for a new business owner, but even more will help take the stress off of you and let you spend your energy on your company. (To learn more, see Build Yourself An Emergency Fund.)

Covering Your Bases
All business owners should think about what would happen to the enterprise and the revenue streams being generated if health or other issues were to prevent them from being involved in the business. In other words, if the entrepreneur were to become disabled, who would takeover? Could the business survive?

Consider these issues beforehand and determine whether disability income insurance makes sense, or if a partner could fill the void caused by your absence. (To find out more about protecting your company, see The Disability Insurance Policy: Now In English, Protecting Your Income Source and Protect Your Company From Lawsuits.)

Foreseeing the Future
It's great to own a business, but ultimately the entrepreneur will probably want to retire or move on to other challenges. With that in mind, you should create a business plan that discusses how you will transfer, sell or close your company. If your business depends on your unique knowledge and contacts, it may not be able to be assumed by another party.

Conclusion
There are few things more satisfying and rewarding than launching and owning your own home-based business, but before diving in, be sure to do your homework. Making a business work is not an easy task, but proper planning will help to increase its chances of success.

To keep reading on this subject, see Be Your Own Boss By Freelancing.

by Glenn Curtis (Contact Author | Biography)
Glenn Curtis started his career as an equity analyst at Cantone Research, a New Jersey-based regional brokerage firm. He has since worked as an equity analyst and a financial writer at a number of print/web publications and brokerage firms including Registered Representative Magazine, Advanced Trading Magazine, Worldlyinvestor.com, RealMoney.com, TheStreet.com and Prudential Securities. Curtis has also held Series 6,7,24 and 63 securities licenses.

6 Simple Steps To $1 Million

Let's face it; we all don't make millions of dollars a year, and the odds are that most of us won't receive a large windfall inheritance either. However, that doesn't mean that we can't build sizeable wealth - it'll just take some time. If you're young, time is on your side and retiring a millionaire is achievable. Read on for some tips on how to increase your savings and work toward this goal.

Stop Senseless Spending
Unfortunately, people have a habit of spending their hard-earned cash on goods and services that they don't need. Even relatively small expenses, such as indulging in a gourmet coffee from a premium coffee shop every morning, can really add up - and decrease the amount of money you can save. Larger expenses on luxury items also prevent many people from putting money into savings each month. (For related reading, see Squeeze A Greenback Out Of Your Latte.)

That said, it's important to realize that it's usually not just one item or one habit that must be cut out in order to accumulate sizable wealth (although it may be). Usually, in order to become wealthy one must adopt a disciplined lifestyle and budget. This means that people who are looking to build their nest eggs need to make sacrifices somewhere - this may mean eating out less frequently, using public transportation to get to work and/or cutting back on extra, unnecessary expenses. (To learn more, read The Disposable Society: An Expensive Place To Live.)

This doesn't mean that you shouldn't go out and have fun, but you should try to do things in moderation - and set a budget if you hope to save money. Fortunately, particularly if you start saving young, saving up a sizeable nest egg only requires a few minor (and relatively painless) adjustments to your spending habits. (For more insight, read Under 30 And Financially Secure In 10 Steps.)

Fund Retirement Plans ASAP
When individuals earn money, their first responsibility is to pay current expenses such as the rent or mortgage expenses, food and other necessities. Once these expenses have been covered, the next step should be to fund a retirement plan or some other tax-advantaged vehicle.

Unfortunately, retirement planning is an afterthought for many young people. Here's why it shouldn't be: funding a 401(k) and/or a IRA early on in life means you can contribute less money overall and actually end up with significantly more in the end than someone who put in much more money but started later. (To see how this works, check out Why is retirement easier to afford if you start early?)

How much difference will funding a vehicle such as a Roth IRA early on in life make?

If you're 23 years old and deposit $3,000 per year (that's only $250 each month!) in a Roth IRA earning and 8% average annual return, you will have saved $985,749 by the time you are 65 years old due to the power of compounding. If you make a few extra contributions, it's clear that a $1 million goal is well within reach. Also keep in mind that this is mostly interest - your $3,000 contributions only add up to $126,000.

Now, suppose that you wait an additional 10 years to start contributing. You have a better job and you know you've lost some time, so you contribute $5,000 per year. You get the same 8% return and you aim to retire at 65. When you reach age 65, you will have saved $724,753. That's still a sizeable fund, but you had to contribute $160,000 just to get there - and it's no where near the $985,749 you could've had for paying much less.

Improve Tax Awareness
Sometimes, individuals think that doing their own taxes will save them money. In some cases, they might be right. However, in other cases it may actually end up costing them money because they fail to take advantage of the many deductions available to them.

Try to become more educated as far as what types of items are deductible. You should also understand when it makes sense to move away from the standard deduction and start itemizing your return. (To learn everything you need to know about filing your tax return, check out our Income Tax Guide.)

However, if you're not willing or able to become very well educated filing your own income tax, it may actually pay to hire some help, particularly if you are self employed, own a business or have other circumstances that complicate your tax return. (For more on this, see Crunch Numbers To Find The Ideal Accountant.)

Own Your Home
At some point in our lives, many of us rent a home or an apartment because we cannot afford to purchase a home, or because we aren't sure where we want to live for the longer term. And that's fine. However, renting is often not a good long-term investment because buying a home is a good way to build equity.

Unless you intend to move in a short period of time, it generally makes sense to consider putting a down payment on a home. (At least you would likely build up some equity over time and the foundation for a nest egg.) (For more insight on weighing this decision, read To Rent Or Buy? The Financial Issues.)

Avoid Luxury Wheels
There's nothing wrong with purchasing a luxury vehicle. However, individuals who spend an inordinate amount of their incomes on a vehicle are doing themselves a disservice - especially since this asset depreciates in value so rapidly.

How rapidly does a car depreciate?

Obviously, this depends on the make, model, year and demand for the vehicle, but a general rule is that a new car loses 15-20% of its value per year. So, a two-year old car will be worth 80-85% of its purchase price; a three-year old car will be worth 80-85% of its two-year-old value.

In short, especially when you are young, consider buying something practical and dependable that has low monthly payments - or that you can pay for in cash. In the long run, this will mean you'll have more money to put toward your savings - an asset that will appreciate, rather than depreciate like your car.

Don't Sell Yourself Short
Some individuals are extremely loyal to their employers and will stay with them for years without seeing their incomes take a jump. This can be a mistake, as increasing your income is an excellent way to boost your rate of saving.

Always keep your eye out for other opportunities and try not to sell yourself short. Work hard and find an employer who will compensate you for your work ethic, skills and experience.

Bottom Line
You don't have to win the lottery to see seven figures in your bank account. For most people, the only way to achieve this is to save it. You don't have to live like a pauper to build an adequate nest egg and retire comfortably. If you start early, spend wisely and save diligently, your million-dollar dreams are well within reach.
Glenn Curtis (Contact Author | Biography)