Find ways to save on each paycheck

Working for the Man doesn't mean you have to resort to buying lottery tickets to make a million. The trick is to maximize your income from your job (and know when to move on), make the most of your employee benefits and tax breaks to pocket more cash, and use the extra money to start investing.

Get a raise:

1. Keep your eyes peeled for better ways to do your job. Streamline a procedure, shave costs, create a new profit center — anything that will make you stand out as a prime candidate for a promotion or a pay boost.

2. Don't be afraid to negotiate for more money.

3. Quantify how much your efforts add to the company's bottom line. If that's not feasible, spotlight your value with comparable salaries for workers in your position from a Web site, such as Salary.com, or from a professional association.

4. Plot your strategy when it's time to move on. Create a professional-looking page on MySpace that tells prospective employers why you're an exceptional candidate, recommends John Challenger, of the outplacement firm Challenger, Gray & Christmas.

Milk your benefits:

5. Contribute as much as you can to your 401(k) and other tax-deferred retirement plans. You'll not only build a bigger nest egg, but you'll also cut your tax bill.

6. Flex your tax-saving muscle. Contribute pretax dollars to a flexible spending account to pay for dependent care or out-of-pocket medical expenses.

7. Review your tax withholding. If you're expecting a refund this spring, you're having too much tax withheld from your paycheck. To put more money in your pocket, use the withholding calculator at kiplinger.com/tools/withholding and then fill out a new Form W-4.

8. Stash savings in a Roth IRA, if you're eligible. Withdrawals in retirement, including decades of compounded earnings, will be tax-free. This year, income-eligibility limits for a Roth increase to $114,000 for individuals and $166,000 for married couples.

Invest like crazy:

9. Don't delay. The quicker you get a jump on putting money aside, the easier it will be to stuff a seven-figure cushion. If you start at age 25, for example, investing $286 per month will get you $1 million by age 65, assuming you earn 8 percent annually (for more calculations, go to kiplinger.com/links/million).

10. Invest automatically, either through your employer's retirement plan or by setting up a regular deposit to a mutual fund or broker.

11. Watch for fund fees. The more you pay, the tougher it is to earn an above-average return. Your best bet: no-load mutual funds with low expense ratios of 1 percent or less.

12. Keep it simple. Be wary of get-rich-quick schemes or sales pitches for complex investments, such as oil-and-gas partnerships.