We talk about a million different personal finance topics here a Bitter to Richer. We’ve covered investments, recessions, frugal living, and even how to merge finances with someone else. Now, that is all well and good – and incredibly important for almost everyone’s personal finance journey. However, we usually don’t break it down into how you can build wealth. Instead, we’re usually focusing on a single topic that will help you in your personal finance journey. Rather than break down a specific topic, we thought it would be better to go over how all these moving parts help you actually get richer. So, without further ado, let’s dissect 10 ways you can build wealth.
1. Start Saving Money
I can hear the complaints already. “But, I thought this was about building wealth, why are you talking about saving money?” The answer is simple. You need to be able to save money if you want to become wealthy. If you don’t start saving now, you won’t start in the future – even if you make a lot more money. Start yourself on the fundamentals, so that you actually have the chance to grow in the future.
If you need help to start saving, that’s fine. Try signing up for Acorns. If you don’t know what that is, you can read my full review here. The main thing you need to know is that it will help you start saving money, and it can teach you a lot of important financial tidbits along the way.
2. Start Investing In Index Funds And ETFs
There are many investors who put their money exclusively in index funds and ETFs. That might seem a bit silly, but it’s a proven strategy that works. Now, I’m not suggesting you invest solely in index funds and ETFs. However, I recommend you start with them. They’re an easy way to begin investing with great returns and low overhead. Just remember, these investments are for the long term results – it won’t necessarily benefit you to try to invest for the near future.
I wrote a complete guide that can help you get started today. When you’re ready to take the plunge into investing, I highly recommend M1 Finance. It’s lightweight, easy to manage, and has tons of great funds to choose from. Vanguard is another good brokerage, but it’s less beginner-friendly.
3. Consider Real Estate
This should be an absolute no-brainer! Your finances usually have to be in a somewhat decent spot to get into real estate, but it can be a great area to invest in if you do your research and know what you’re doing. For example, when you’re choosing between buying and renting, if you plan on staying in the area for several years then buying a house can actually save you a ton of money. If you’re curious about that process, I wrote a guide to buying your first home.
Beyond the potential savings, there are tons of investment opportunities in real estate. You can buy houses and flip them, do renovations, and even rent out your properties. A lot of these investments require a lot of overhead, so don’t go into it thinking it will be hands-off. With that being said, a lot of money can be made in this sector! If you want to know more, check out my interview with a successful real estate investor.
4. Know Your Worth
These days it’s easier than ever to make six figures. If you aren’t already, I recommend you learn high-paying skills that can help you make $100,000 annually. If you’re already making that much, or need more generalized advice, I’ve still got one major tip to help you. Just ask for a raise.
To many that will sound a little outlandish, but often the difference between making what you’re making and making more is just asking. They might say no, and that’s okay. When you feel like you’re being underpaid I highly recommend you change your employer if they don’t entertain the idea of paying you more. It’s okay to love what you do and want to do it, but don’t forget that you still have to look out for yourself.
5. Start A Side Hustle
I talk about this one all the time, and I really mean it. I have tons of resources on this topic, so there is no excuse to not start a side hustle! Remember, this can be something that you love, so don’t overcomplicate it or think you’re taking on a ton of work that you’re guaranteed to hate. Find something you enjoy doing and then figure out a way to monetize it. It MAY add some work that you dislike, but hopefully you can find something that you enjoy most of the process for.
If you need help generating ideas, there are tons of lucrative side hustles to try out. Remember to stick with it. Take my 30-day challenge to get started, but if possible you should try to stick with it for at least six months. By then you’re likely to start seeing some really awesome results. Also, there is always the possibility for you to quit your job and turn your side hustle into a full-time business.
6. Build New Habits
There are many fantastic financial habits that the rich use to get and maintain their wealth. All you need to do is find them and start working on them. Ultimately, it’s just a matter of discipline and taking the effort to build on your fundamentals in new ways. You probably already know tons of habits you should start, or stop, so it’s just a matter of pushing yourself to do what you know you should do. So, do it, don’t delay any longer! The sooner you build better financial habits, the faster you’ll achieve real wealth, and consequently, financial freedom.
7. Understand What Wealth Means
That brings me to my next point. In order to focus on actually building wealth, you need to know what that means for you. For some people it means being able to buy nice things. If that’s you, that is perfectly fine. For many people it’s more about financial freedom. You need to decide what your priority is when it comes to wealth, and you need to change your goals to meet that end. Good financial goals are the posts that will guide you to your final destination. Set them, follow them, and don’t forget them.
8. Don’t Be Afraid To Ask For Help
I know this is hard for a lot of people, but when you need help don’t be afraid to ask for it. This can be a lot of things. If you need advice, seek it. If you’re having trouble sticking to your new financial habits or goals, find an accountability partner. When you are delving into an entirely new area, find a mentor if you can. There is no shame in needing or wanting help. The real shame lies in needing help but being too proud to admit it.
9. Find Legal Ways To Lower Your Tax Burden
Taxes can be extremely detrimental. For many people taxes are their single highest expense. While there is no way to get out of them – at least not legally or ethically – it’s important to face them head-on and do your best to mitigate your taxes. Make sure you use any tax deductions that are relevant to you, and see if there are opportunities available to lower your taxable income (like investing in a 401k).
If you need to, take the time to hire a professional who can help you cut back on taxes and get your finances in better order. Most people won’t need a service like that, but once you make a lot of money from a side hustle or your own business, it may be mandatory. If your finances are complicated, at least consider it.
10. Sign Up For The Bitter To Richer Newsletter
Okay, this one is a shameless self-promotion – I admit it. Yet, if you want to stay up to date with new content on personal finance then the Bitter to Richer newsletter is the best way to do that! Even more, when you sign up, in the welcome email we send out a FREE budgeting template and financial goals worksheet. The Bitter to Richer newsletter can help you obtain and develop the financial toolset you need in order to build and keep a serious about of wealth. Sign up now!
Conclusion
Hopefully these 10 ways to build wealth resonated with you. If you have any of your own to share, be sure to leave a comment. For more information on everything I covered here, check out my interview series with business owners and notable professionals!
