Got a 401(k)? This employer-sponsored retirement account makes it easy to make pre-tax contributions straight from your paycheck. Your contributions lower your taxable income in the current year as you sock away money for your future self. Stick with it year after year, and your balance could snowball into a million-dollar nest egg before you know it.

Sure, things like market performance are out of your control. Still, there are plenty of moves within your power that can put you on the path to reaching your goal faster than you might think.

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Let’s dive into a few smart strategies to help you edge closer to joining the 401(k) millionaire club.

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1. Maximize your contributions

Each year, you have an opportunity to sock away money into your 401(k), and the contribution limits are generous. For 2024, employees under 50 can contribute up to $23,000, and that limit increases to $23,500 in 2025. You can spread your contributions evenly throughout the year or adjust them as needed to align with your financial goals and budget.

All told, only 14% of 401(k) participants maxed out their contributions in 2023, according to Vanguard. A general rule of thumb is to aim for 10% to 20% of your income toward retirement savings. The younger you are, the less you’ll need to stash away to hit the million-dollar mark. But if you’re playing catch-up, don’t worry — once you’re over 49, you can contribute more than the standard limit with catch-up contributions.

But let’s face it: it’s tough to stash a pile of money into a 401(k) for retirement when your current needs aren’t met. Here are some tips that will make it easier to stay on top of 401(k) contributions:

• Set up an emergency fund: Save at least three to six months’ worth of expenses so you won’t have to dip into retirement savings for unexpected costs.
• Beef up your savings: Create a separate account for major expenses or goals to avoid cutting back on retirement contributions.
• Live below your means: Avoid relying on your entire paycheck. Track income and expenses to build some breathing room into your budget.

Once your day-to-day finances are squared away, it’ll be much easier to focus on maximizing your contributions and investments. Remember, what you invest in plays a big role in how much your money grows — or shrinks — over time. Be sure to research your investment options carefully and keep a close eye on fees, as they can chip away at your returns.

2. Snag your 401(k) match from your employer

You could score some extra cash in your retirement account if your job offers a 401(k) match. In a nutshell, your employer chips in and adds money to your retirement account — up to a certain limit — when you contribute to it.

For example, let’s say your employer matches 50% of your contributions up to 6% of your salary. If you earn $100,000 annually, they’ll toss in an extra $3,000 when you contribute $6,000 (6% of your salary). It’s like getting an automatic pay raise, with an instant 50% return on your contributions. Even better, thanks to the power of compound growth, those employer matches could balloon into six figures over time and supercharge your 401(k) on its journey to the million-dollar mark.

3. Stick with the process

Truth be told, racking up a million-dollar 401(k) isn’t as straightforward as it sounds. There will be moments when boredom sets in and you’re tempted to chase more exciting opportunities. Market swings might flip your portfolio upside down, making you question if staying the course is worth it. Even worse, unexpected layoffs or expenses can knock your finances off track.

When these challenges arise, remember this: consistency is key. Make sure you always have extra cash on hand, so you don’t have to dip into your retirement funds. Leave your portfolio alone, and let the power of time work for you.

None of these 401(k) millionaire tips are probably surprising. You’ve likely heard them before. But here’s the deal: success comes down to creating a plan you can stick to. Start by setting goals for your paycheck, move on to annual savings targets, and envision where you want to be in retirement. The key is to find what works for you, and double down on those strategies.

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