How To Grow Your Money (10 Wealth Building Strategies)

I know what you’re thinking - Is the topic of wealth creation really relevant to me? Aren't wealth-building strategies reserved for the wealthy? 

If that is you, think again! 

Wealth building is not mission impossible for everyday people like you and me. You can grow your money with these wealth-building strategies. 

Get this: Millionaires aren't born, they're made. Nearly 68% of the world’s richest people are self-made, according to a report by Wealth-X

And what’s more? Most millionaires aren't living out in Hollywood. They’re our neighbors - every day millionaires. People who have built their empires from the ground up - women and men who've maintained their lifestyles while building real wealth. 

Think about it - if that is true, then they must have grown their wealth from the ground up.  They must have started from a zero net worth, negative even! 

Do you see where I’m going with this? 

If you’re anything like me, you probably have big dreams and goals for your life. You can clearly visualize them, and you’re constantly working your butt off to try to reach them. 

Perhaps unsurprisingly, these goals and dreams often intersect with aspirations to grow our wealth because these dreams often can only be achieved if we have the financial capacity to make them happen. 

The good news is if the self-made millionaires we talked about could grow their wealth, so can you! 

Now, let’s not kid ourselves - building wealth and achieving financial independence is not easy. If it was, everyone would consider themselves financially secure (on the contrary, according to a recent study by Fidelity Investments, 60% of Americans are concerned about their finances). 

The point here is, with the right mindset, a healthy dose of financial planning, strategy, and hard work, you can grow your wealth and achieve financial freedom, whatever that looks like to you. 

Now let’s dig a little bit deeper to find out some of the key wealth-building tips that will help you build your wealth and secure your financial future. 

10 Key Steps to Build Wealth

  1. Develop an abundance money mindset 
  2. Track your money
  3. Prioritize saving
  4. Invest early and often 
  5. Form an income strategy
  6. Create a financial plan for your money goals
  7. Live within your means
  8. Surround yourself with like-minded people 
  9. Invest in yourself 
  10. The three R’s: Realign, Review, Repeat!

1. Develop an abundance money mindset

The foundations of personal finance seem simple enough - earn more, don’t buy crap you don’t need, invest a ton - but anyone who has tried emulating some of these principles can tell you they’re not always quite easy to do.

Money is often a source of stress, fear, and limitation, so it consequently makes us operate from a mental space that leaves us with undesirable results.

Sound familiar? Well, you’re not alone.

We all have our own money beliefs that we have internalized over time. These feelings, often subconscious, impact the way we approach earning, saving, spending, and investing in our lives.

Your money mindset can subconsciously negatively impact your relationship with money. But your mindset is not fixed. You have the power to reprogram it.

As you become intentional about your thoughts, feelings, and interactions with money, you gain awareness and can gradually reprogram your limiting beliefs around money.

Every single day you have the power to make decisions that will move you forward financially or set you back. If your goal is to enjoy a more joyful, abundant, and confident relationship with your money, it’s time to start adjusting your mindset to one of growth and abundance. 

Related: How to improve your money mindset

2. Track your money

Listen: It doesn’t matter if you’re living pay-check to pay-check or earning a six-figure salary. If you want financial security, you'll need to understand where your money is going. 

But life can be busy. Have you noticed? 

With so many competing priorities, it might be easy to lose track of where all your money went. But being intentional with your finances and dedicating some time and effort to track it is important if you’re looking to reach your money goals.

I'm going to take a leap of faith here and guess that you've heard of a budget. But unlike what you might have heard, budgeting isn’t about restricting yourself. 

Budgeting is quite simply a plan for how you will use your money both now and in the future so it actually gives you the freedom to spend money on the things you love. 

Budgets can also help you understand your cash flow - money coming in and money going out. 

Related: 7 reasons why you absolutely need a budget

But tracking your money isn’t just about monitoring your spending and understanding your cash flow. 

If you want to grow your wealth, you need to track your net worth

That’s right! 

You need to track the difference between your total current assets (home, car, cash in the bank, investments), and your total liabilities (car loan, outstanding mortgage, credit card debt, student debt). 

Think about it: What better way is there to accurately measure your wealth? 

What’s more, tracking your net worth can be a great motivator! Seeing growth in your net worth as a result of increased savings and growing investments (hello compound interest!) can truly propel you forward on your road to financial freedom.  

3. Prioritize saving to grow your money

Look: The best time to start saving toward your future was yesterday. The next best? Today. 

If you have been around the personal finance realm for some time, you might have heard the phrase ‘pay yourself first’ being tossed around. Paying yourself is a pillar of personal finance that if practiced consistently over time, can lead to incredible financial health. 

Paying yourself first is all about prioritizing your savings to safeguard your financial future as opposed to prioritizing all your spending then saving what is left over. It nurtures a sense of self-discipline that will focus your efforts on your financial goals and propel you through the stages of financial freedom to financial abundance. 

Related: Why You Should Pay Yourself First

While you’re at it with paying yourself first, make sure to claim your free money from your employer! 

Yes, you read that right. Enter: Retirement accounts. 

Retirement accounts can be a great tool for prioritizing savings. They are built to incentivize us to contribute to them. Many companies match 50% to 100% of employees’ 401(k) contributions up to a certain percentage of their salary as part of their employee benefits package. This is quite simply free money that you shouldn’t be leaving at the table. 

A National Study of Millionaires found that 80% of net-worth millionaires in the study said that investing in their employer-sponsored retirement plan was the main way they reached millionaire status. 

You can let that simmer for a moment - I know I had to. 

What’s more, retirement accounts allow you to defer paying income taxes on the money you save for retirement, allowing you to have more money in the account, and consequently, more growth as a result of compounding interest.

4. Invest early, often, and strategically

Listen, if you want a shot at becoming wealthy, you need to do more than simply earning and saving money.

Don’t get me wrong. Saving is all good and is foundational for financial success especially when done consistently and increasingly, but to truly build wealth, you want your money to work for you - you want to maximize compounding effects on your investments. 

Albert Einstein couldn’t have put it any better, “Compound interest is the eighth wonder of the world. He who understands it earns it ... he who doesn't ... pays it.” 

Related: How does compound interest work for me? 

I know what you’re thinking - so how exactly can I maximize compounding effects on my investments? 

The answer is simple - you might have actually already seen it before, maybe even on the subtitle of this section. 

Invest early and often. Time and capital are very good friends of compound interest.  

Don’t believe me? 

Well let’s hear it from Jess Emery, a spokesperson for Vanguard Funds, “Successful investors typically build wealth systematically through regular investments, such as payroll deductions at work or automatic deductions from a checking or savings account.”

And there’s more - the National Study of Millionaires found that 75% of the self-made millionaires in the study said that regular, consistent saving and investing over a long period of time was the reason for their success. 

Now that we’ve talked about investing early and often, let’s briefly talk strategy. 

To be successful in investing, you should realize that investing is a long-term strategy to build wealth. You should not try to time the market by buying low and selling high. Not even the most advanced investors can consistently beat the market.

Focus on the long-term gains. There will be ups and downs in the stock market, of course, but investing with a long-term mindset means you have years to ride out the fluctuations. Start now, even if you have to start small. 

There’s a lot more to strategically investing, from keeping your fees low, to tax-efficient investing. I recommend that you check out the investment guide for more tips. 

Related: Investment guide for beginners

5. Form an income strategy

Be honest. Did you strategically choose your career or did you fall into it? 

If you fell into it, you’re not alone. But that doesn’t mean there is nothing you can do about it. Think about your career moves, especially early on in your career. 

Why do I say this? 

It turns out early career moves are very important. For the average person, income growth happens before the age of 35. After that, most people see almost no growth in income. 

Astonishing, isn’t it? 

Well, get this: This trend doesn’t apply to the top 10% of earners. The highest earners see sustained increases in their income over time. 

Wow! Talk about a plot twist. 

So what’s the takeaway here? 

Ask for that raise sooner, save more money earlier, be creative with your sources of income - try out that side hustle, set up that passive income source, start that business. 

6. Create a financial plan for your money and life goals

If you’re anything like me, you probably have big dreams and goals for your life. You can clearly visualize them, and you’re constantly working your butt off to try to reach them. 

These goals and dreams often intersect with our financials because they can only be achieved if we have the financial capacity to make them happen. 

But a goal without a plan is simply a wish. 

Love it or hate it, if you want to achieve your dreams, you need a healthy dose of financial planning for your goals. 

And get this: You are 42% more likely to achieve your goals if you write them down. Writing helps you visualize your future, prioritize, and understand the impact that your actions now can have on your future. 

Start by writing out the main financial goal for this year then go from there. 

No one expects you to prepare a plan in one day - creating a financial plan is a process. It isn’t easy, but your future self will be very thankful if you do take the time and effort to do it.  

7. Live within your means

4,000 to 10,000 advertisements. That's the number that digital experts estimate most Americans are exposed to - per day! Mind you, these are 2015 numbers. 

Such unrelenting commercial bombardment is exerting a powerful effect - one that convinces us that consumption is the key to a meaningful life. But this cannot be further from the truth. 

Being financially responsible and frugality are important for financial health and to achieve your goals. 

At a staggering $5313, the average person's credit card debt paints a clear picture. So many people are spending money that they simply do not have.  Budgeting can help stop this habit at its tracks and help you pursue a better relationship with money.

News flash: Warren Buffett bought his 5 bedroom house, which he still lives in, for $31,500 in 1958 - that’s $250,000 in today’s dollars. It makes up 0.001% of his total wealth. 

Now it's your turn. Are you ready to think like a millionaire billionaire?

8. Surround yourself with like-minded people

Continuously surrounded by people who think they can never save? Well, then you are very likely to start thinking the same way. 

Do your friends go shopping every weekend and have to buy the latest trends? You're likely to gradually do the same. 

Whether you admit it not, relationships have a strong impact on your financial life. 

A recent study found that when people shared their goals and progress in small groups, their savings rate nearly doubled.

That’s right - a 100% increase in savings rate simply from being held accountable. 

Pursuing your financial plans won’t be easy so you will not only need all the motivation that you can muster, but you will also need to keep yourself accountable - whether from your significant other, friend, mentor or certified financial planner. 

9. Invest in yourself

Here’s the thing - good investing begins by investing in yourself. 

Build financial confidence gradually by using online resources to learn about money mindset, saving, investing among relevant topics.

Invest in habits that can set you up for financial success such as reading personal development books.

I know, I know...

You’re thinking, how am I supposed to set aside time to read books when I have all these other very real things I need to do to grow wealth?

I get it, but look, the right books will motivate and inspire you daily, influencing and challenging you with new perspectives and ideas to reprogram the way you think.

Personal development books often promote the power of positive affirmations which studies have found to motivate you and boost your self-esteem. Among wealthy people, 88 percent read 30 minutes or more for self-improvement every day. This is according to Thomas Corley, author of ‘Rich Habits’ which is based on a 5-year study of self-made millionaires.

Anthony Robbins couldn’t have said it better, “It’s not what we do once in a while that shapes our lives. It’s what we do consistently.”

10. The Three R’s: Review, Re-align, Repeat

In case you’re wondering, I totally made up ‘The Three R’s’! But for all intents and purposes, it serves us just fine. 

Life happens! Maybe you’ve noticed?

Different things may impact your ability to stick to your financial plan, hence the need to review your financial plan frequently, and to re-align your goals as you go. After all, a financial plan isn’t meant to be a static document. 

Finally, lather, rinse and repeat these steps on your road to financial freedom. 

Final Thoughts

To sum up, you can grow your money to secure your financial future. 

That starts with choosing to be intentional about wealth creation. It starts with simple everyday decisions that translate to wealth-building strategies. It will take some time, effort, and consistency, but you can make it happen! 

10 wealth building strategies for wealth creation

 

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