The Millionaire Club: Thirty-Something

BOSTON (CBS) - So how does a thirty-year-old become a millionaire? With some discipline I think many can do it.

Everyone should be told about saving for retirement when they start their first job. It's all about the miracle of compounding.

But it is the rare employee that gets that advice though. So let's say you're now thirty-something and you looked at your net worth and said "Oops, I haven't got anything saved for retirement."

If you are able to start at age 30 and save $2,000 a year and if we assume you will earn an 8% average return, your nest egg could have over $400,000 in it at age 67. To reach that million dollar amount you have to save more than the twenty-something. You will need to contribute at least $5,000 annually to your retirement plan to achieve the million dollars or about $185,000 over your working career.

You still have the luxury of 30 years or more to accumulate assets for retirement. Contribute as much as you can to your employer's retirement plan, but be sure you are contributing enough to take advantage of your employer's match.

During this third decade of life people are looking to achieve the American Dream, a house with a two-car garage, a picket fence and a dog. Getting out of debt is critical here if you want to achieve your goals and dreams. Too much debt will prevent you from getting the best rates on a mortgage or sometimes prevent you from getting the mortgage altogether.

Now that you got your house you may want to have a couple of kids to fill those upstairs bedrooms. And then you need to begin to plan for college for those kids. So you need to be saving for more than one goal. Raising a family, saving for college and paying off a house are just a few of the things that will compete for your limited dollars during your third decade.

A poor credit score can affect your goals by slowing down your ability to achieve the American dream. Not only creditors look at your credit score and history, but potential employers, insurance companies and landlords may be looking at those reports. So using credit wisely is crucial during this decade.

According to a survey by the Federal Reserve, 55% of thirty-somethings do not pay off their credit card balance each month. Carrying even a small balance of $3,000 on a credit card that charges 14% will take 20 years to pay off and it will cost over $3,500 in interest. That's assuming you charge nothing else on that card.

One more thing:   What does it take to be a Millionaire?

Here is a fun chart to see just where you are at with your own retirement planning. The younger you are when you start the less you will need to save!

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• Anthony Silva