How I did it: I saved nearly everything I earned from my paycheck and then invested it. I also got lucky and invested near the bottom in 2008 and consequently, was able to increase the value of my initial investments substantially. Had I invested a year earlier, it would probably have taken me another year to have reached this goal.

Lessons & tips: When you invest your money, don't buy individual stocks. You'll be best served by investing in low-cost index funds. With index funds you are owning a piece of many companies, thus reducing your risk. Or if you prefer, you can invest in funds that are professionally (actively) managed. The expense of owning the fund is greater but it's still a better way to get exposure to the market than owning individual stocks. ... Companies can drop in value overnight or even go broke. Another important thing: don't invest based on what you see on TV (i.e. CNBC/Jim Cramer's Mad Money.)

Resources: Yodlee is the website that I use to keep track of my investment/bank accounts. It regularly updates the account values based on money added/spent, and increases/decreases in the value of my investments. I also use Excel to keep track of this information (although I have to update it manually).

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Feb 11, 08:20PM PST | 0 comments | 8 cheers