Everybody would like a little extra money in their accounts.
But that’s much easier said than done.
After paying the mortgage and utility bills, buying groceries, and filling up the tank, there’s not much leftover by the end of the month.
You just can’t win.
Or can you?
If you’re willing to get a little creative with your spending and saving habits, you may be able to regain control of your wealth.
Take a look at these seven wealth-building tips!
1. Put Money in the Stock Market
One of the biggest stock market misconceptions is that you must have significant wealth to benefit from investing.
This is entirely untrue!
By partnering with a financial advisor with market expertise, you can invest and potentially earn a 10%+ return over time.
But you can also take some of your wealth-building into your own hands!
Financial apps like Acorns allow anyone to become a stock investor without knowing a single thing about the market.
This app will automatically “reinvest” the loose change from the purchases you make. You also have the option to add investments each month on a particular day.
So, where do these investments go?
A diversified portfolio.
You can potentially boost your wealth tenfold without worrying about trading stocks, watching the market, or consistently meeting with an advisor.
2. Create a Monthly Budget
If you’re earning over $50,000 a year and still barely getting by, your lack of wealth growth may result from improper spending habits.
So a monthly budget is in order!
The first thing you want to do is figure out how much you’re making each month in the form of income.
Now, take 50% of that value.
Half of your money should be going toward the necessities. Things like the rent or mortgage, utility bills, groceries, health and car insurance, and any other “must-pay” debts.
Here’s a real doozy:
At least 20% of your income should be going right to your savings account.
So if you’re pulling in $5,000 a month:
- 50%, or $2,500, should cover your necessary costs
- 20%, or $1,000, should go directly to the bank
The remaining 30% is yours to do as you please, but consider committing at least a portion of it to add extra cash to your savings.
Over-time this can add extra zeros to your bank account!
3. Pay Your Bills On Time
Credit cards and loans are incredibly convenient. They allow you the privilege of buying the things you want, even when you don’t have the funds available to do so.
But it’s easy to let these debts get out of control.
Especially if they’re high-interest loans.
So one of the best ways to build your wealth is by keeping your debt under control and paying it off as required.
Now, here are some tips for how to do that:
- Pay your credit card bill in full — not the minimum amount — every month.
- Use cash or checks whenever possible, as you can better track your spending.
- Only apply for a loan when it’s absolutely necessary.
- With extra money leftover each month, use some to pay off your debts.
You’ll never successfully build your wealth profile if you still owe a fair amount of money. So get rid of your debt, and you’ll see your wealth grow exponentially.
4. Pick Up a Side Hustle
What better way to increase your wealth than by merely earning more money?
While you can’t control your salary at your day job, you can use your free time each week for good and pick up a side hustle for a little extra cash!
We’re talking about the gig economy, which includes opportunities like:
- Rideshare
- Food delivery
- Freelancing
- Pet sitting or dog walking
- Handyman or home repairs
- Airbnb
Many of these jobs can secure you an extra few hundred dollars each week, with even more earning potential if you have experience in the industry.
This can amount to an additional $10,000+ a year.
5. Earn a Degree or Certificate
Your education level plays a huge role in your earning potential as a member of the modern-day workforce. And job changes don’t always have to be lateral moves.
Degrees and certificates pay!
Advanced education and skill also prove you to be an asset to your workplace, improving your likelihood of getting a promotion.
Just take a look at these average weekly earnings by degree type:
- High School Degree: $712
- Associate’s Degree: $836
- Bachelor’s Degree: $1,173
- Master’s Degree: $1,401
- Doctoral Degree: $1,743
Even getting one degree higher than you currently have can result in an extra $6,000 or more in your account each year.
Look into degrees or certificates in your field and enroll for a program!
6. Invest in Real Estate
Though the real estate market is a bit finicky, you won’t find earning potential quite like investing in the market.
But it’s not what you think.
Investing in real estate doesn’t have to mean flipping houses or renting out properties as a landlord. Though both of those can yield a significant cash windfall.
The affordable trick is REITs.
Websites like FundRise allow you to invest in up-and-coming real estate projects that are popping up across the nation.
Invest $500 and potentially earn up to 20% in returns in a few years.
7. Cut Unnecessary Costs
Unless you’re a stickler for saving some cash, there’s a pretty good chance that some of your hard-earned money is already going to waste.
Without your knowledge.
Now, we’re not going to suggest selling your car and biking everywhere instead, or anything extreme like that.
But there are some ways you can cut costs in your day-to-day life without upending your current lifestyle, such as:
- Replace the cable with Hulu, Amazon Prime, or Netflix subscriptions
- Downsize your car or apartment
- Buy food, supplements, and small items in bulk
- Make coffee and dinner at home instead of going out
- Choose a more affordable cell phone plan
- Cancel that gym membership you don’t use
Will any one of these turn your life around financially?
Probably not.
But even saving $100 a month by cutting unnecessary costs can leave an extra $1,200 in your savings account by the end of the year.
Conclusion
The best way to ensure consistent wealth growth is by implementing these strategies as soon as possible.
Think long-term.
An extra $10 in your account each month amounts to just $120 in a year. Yet, these savings will skyrocket up to $2,400 two decades down the line if you keep it up.
Remember, every little bit counts!
Caitlin Sinclair is the Property Manager at Santana Terrace with five years of property management experience and many more in Customer Service. She shares her passion for her community and looks forward to making Santana Terrace the place to call home.