Last week, I wrote about how I was talking to a group of people recently and the subject of money came up.

They did not know I wrote an investment newsletter, and I did not mention it to them.

The resident "expert" was telling people that the “American Dream” was no longer possible because the deck was stacked for millionaires and billionaires.

Editor's Note: Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

I said I did not dispute the fact that some folks have a tremendous advantage, but anyone could be a millionaire if they could save a few dollars each day and are able to compound it at decent rate.

I wanted to see exactly what was needed to be saved and at what interest every day for 40 years to amass $1 million.

At 12 percent interest, it is $2.79, and at 15 percent, it is $1.06 per day.

Today, I will explain in great detail how this "formula" can become a reality and how you can help yourself, your child or grandchild amass $1 million.

Step 1 is you need to save at least $10 per day and compound your money at 8 percent; however, if you can compound your money at 12 percent annually, you have to save just $2.79 per day.

In today's day and age it is not unreasonable for any kid 16 years old or older to be able to save $3 per day. That is $1,080 per year. And $10 per day is $3,650. Obviously, as you get older that figure can increase.

Many parents do not think young folks can save money. I totally disagree. Logically, if you cannot save money when living at home with your parents, then your chances of saving money once you move out and start your own family are greatly diminished.

Step 2 is that you need to compound your money at a minimum of 8 percent annually and ideally at 12 percent to 15 percent annually.

As a professional investor who has helped my clients (and myself) earns millions of dollars, I can assure you that the average person is unwilling or unable to do so without any help.

However, my Dividend Machine newsletter has easily averaged more than 12 percent annually and it costs less than $2 per week.

You have access to my entire library and you will become educated about allocating capital, as well as being entertained and informed.

The newsletter combines safety, growth and income and was No. 1 in performance with a return of 19.7 percent in 2011, which was top-rated in the low-risk category by Hulbert Financial Digest, a Dow Jones-owned company.

I would suggest whichever newsletter you choose to help you have a proven track record and their record be verified by Hulbert Financial Digest.

Step 3 is to put this money in a traditional or Roth IRA. This way your investment will be able to grow tax deferred.

Too many parents and grandparents talk about education and paying for high-priced, private-school tuition or college with student loans.

Step 4 You do not need debt, unless you are buying a home, and even then you should keep your payment below $1,200 per month. To quote Warren Buffett, “If you’re smart, you don't need debt; if you’re not, it’s poisonous.”

Please save your talk about student loans and other "investments" that require you to go into debt because they are necessary or wise.

I am not saying your idea is wrong. My point is that this particular plan calls for no debt except a house payment under $1,200 per month.

Following these four steps will help you achieve financial independence.

Editor's Note: Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

Unfortunately, most folks do not achieve financial independence. They do not follow these four rules.

They do not save money. If they do, they either spend it foolishly or compound it at anemic rates. They do not commit to saving it in a IRA, and if they do, they run up such high consumer or student-loan debt that they eventually stop saving money.

See, the power of saving money, compound interest and tax deferral works no matter your age, sex, color, creed or background.

I started saving at age 28 and my goal was to save $3 per day. Obviously, I started increasing the amount, and in 14 years, I reached financial independence.

Skeptics will tell you how this idea does not work.

But I know it is possible because it happened to me.

Please email us at dividendfeedback@newsmax.com with your comments.

About the Author: Bill Spetrino Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of the Dividend Machine. Discover more by Clicking Here Now.