Today’s working class must take their retirement planning into their own hands. Pension plans run by employers have slowly disappeared. They’ve largely been replaced by 401(k) savings plans, which are still a fantastic vehicle for building wealth if you know the tips and tricks to get the most out of it.

According to Fidelity, one of the country’s largest 401(k) plan providers, nearly a half-million people have account balances of $1 million or more. The same data indicates that the average person’s 401(k) balance is only $127,000.

So, what is the difference between being average and retiring wealthy? I’m on my 401(k) journey, and I’ll tell you precisely how I plan to hit that magic seven-figure milestone before retiring.

1. Get in the game

You can debate the best strategy, but nothing matters if you don’t contribute to your retirement plan. That’s right; you need to start if you haven’t already. Look, my first job paid a low salary, and it’s hard to pay the bills when you’re just starting your adult life. Putting off your 401(k) contributions to conserve cash sounds logical. Don’t fall into that trap.

Suppose you graduate college and start your first job at 23, making a $30,000 salary. Contributing 2% of your salary would be $50 monthly, which can seem so minor that it’s not worth it. Yet, earning a 10% annualized return (the S&P 500‘s historical average) would mean retiring with $556,000 at age 67.

Now, suppose you wait until age 35 to start. By then, you’ve increased your salary to $65,000. Contributing the same 2% would be $108 monthly. You’re contributing more than double the original amount every month, yet you’ll retire with just $345,000 at age 67. Time is your greatest ally, so don’t squander it just because you’re not yet financially comfortable. Find a way to get started, no matter how little.

2. Try to land a job with an employer match

I’ve significantly boosted my 401(k) contributions with free money. How? With a 401(k) employer match. A 401(k) employer match is a financial incentive employers use to get employees to utilize their 401(k) plans. It’s generally a dollar-for-dollar (or other specified ratio) match that your employer contributes up to a stated amount or percentage of your salary.

So, if you make $100,000 and your employer matches dollar for dollar up to 5%, it would contribute up to $5,000 as long as you’re contributing the same or more. In other words, that first $5,000 you contribute will actually be $10,000 in your 401(k). However, you usually only get the match if you’re contributing first, and there might be a vesting period. But other than that, it’s virtually free money for your retirement. Most employers offering 401(k) plans offer a match, so double-check to ensure you get the most easy money possible.

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3. Give your 401(k) a raise

Most people tend to spend more as their income rises. That’s all good, but don’t forget to give your 401(k) the occasional raise to supercharge how your money grows. Your contribution amount will slowly grow as you get small and steady wage increases over time. After all, your contributions are often based on a percentage of your salary. But if you land a promotion or notable pay raise, consider bumping that contribution percentage by a point. I’ve found that increasing my 401(k) contribution before increasing my budget helps me invest more without noticing a difference in my lifestyle.

Remember that 401(k) contributions defer your income taxes, so contributing more will lower your taxable income for that year. You get the short-term tax benefit and the long-term reward of having more money in retirement. Plus, 401(k) contribution limits are among the highest of any retirement account.

Putting it all together

Sometimes, the best advice is simple. I plan on retiring as a 401(k) millionaire simply by contributing to my 401(k), earning my employer’s match, and living below my means. The result? I’m investing more as my income grows, and it doesn’t feel like I’m strapping myself financially.

It’s a blueprint anyone can follow, so don’t put it off; get started if you haven’t already.

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