4. Open an IRA

money essentials ira

You know what'll really make you rich? Making money without paying taxes. If your job doesn't offer you a 401(k) plan, or you already contribute to one but want to stash away more money, open an IRA. It works like a 401(k) but you can set it up yourself. The money you invest in your IRA will grow tax free. You might even be able to get a tax deduction on the money you put in -- or in the case of a Roth IRA -- pay no taxes on the money you take out.

IRAs are such a good deal that the government limits the amount of money you can contribute in a year. But if you have a 401(k) plan at work, you can stash money away in both accounts.

More on IRAs

First published November 21, 2018: 3:09 PM ET

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