The final step in your quest to become a millionaire is to make sure that as much of money you earn as possible is there for you to invest. That means giving as little as possible to your greedy Uncle Sam. There are two simple ways to beat tax man, thereby increasing amount of money available to help build your net worth. Pretax investment vehicles, such as a 401k, traditional IRA and 529 college savings plans, allow you to lower amount that your employer deducts from your weekly paycheck to cover your state and federal tax liability. The only drawback to these types of investments is that once you pull money from account, taxes are due in full. You do however get benefit of watching your money grow tax free for years, which allows concept of compound interest which I discussed earlier to work harder for you than it would if your money was in a traditional savings account. A traditional savings account is one of worst investment vehicles available. Along with comparatively low rates of interest which savings accounts earn, any money that you do earn is subject to annual taxation. To avoid paying taxes on money you withdraw once you become an independently wealthy millionaire, you should set up a Roth IRA. A Roth IRA is funded with after tax dollars, which may leave you wondering how that helps you avoid paying taxes. The fact is though, that in a Roth IRA, all money you earn is yours to keep. Uncle Sam can’t take a penny of money that you accrue in interest, meaning in long run, tax advantages are far better than any other form of investment.

I’ve just shown you in three easy steps how you can take advantage of unseen forces of financial world to grow your net worth at an alarming rate, now all that is left is for you to follow my advice and wait patiently for compound interest to work its magic. By avoiding taxes to greatest extent possible, turning you home into an investment, and most importantly of all, not waiting to start saving, you too can be a millionaire. What you do once you get that million dollars is up to you.

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If you don’t have cash on hand to pay fees, you can get them tacked on to mortgage, paying nothing out of pocket for your refinanced home mortgage.

If you refinance and shorten term of a home mortgage, you will pay a higher monthly payment, but you’ll save a significant amount of money over term of mortgage in addition to paying off your home and building equity faster.

Standard mortgage terms run 15 years or 30 years. If you’d prefer a term somewhere in between standard terms, ask for a custom loan and designate a term that works better for you. Find a term that strikes a balance between a term shorter than 30 years and monthly payments lower than those of a 15-year mortgage.

If you cannot get a custom term, settle for a 30-year mortgage and pay more than monthly payment to pay off loan sooner. You must also negotiate no pre-payment penalty.

Where to go from here

1. Review your credit record with each of three credit bureaus: Equifax, TransUnion and Experian. Mistakes are common in credit reports, and you may be surprised at what you find: accounts that do not belong to you, balances that do not match your statements, an identity mistake or worse. Correct any bad information.

2. Compare mortgage rates and fees online among several finance companies.

3. Use a good mortgage calculator. Using refinance calculators is only way to determine which loan is better all-around deal.

Work fast, but negotiate hard to make a deal that works for you. The loan company wants your business as badly as you want a better rate.