5 Personal Finance Experts Share Their Top Tips for Building Wealth
Wealth building isn’t something that happens overnight, and it’s not easy by any means. However, with the right knowledge, tools, and mindset, anyone can build wealth over time. We’ve asked five personal finance experts to share their top tips for building wealth, and their insights range from practical tips to big-picture thinking.
1. Brad Rosley – Save, save, save
According to Brad Rosley, the founder of Fort Pitt Capital Group, saving is the cornerstone of building wealth. Rosley emphasizes that people should pay themselves first, meaning that they should set aside money for savings before paying their bills. Brad advises that people should have an emergency fund saved up to six months’ worth of expenses.
“Saving money is a habit,” Rosley notes. “Once you get into the habit of saving, you’ll find that you don’t miss the money you’re setting aside. And over time, compounded interest will do wonders for your wealth.”
2. Paula Pant – Live below your means
Paula Pant, the creator of the personal finance blog Afford Anything, is all about living below your means. “If you can keep your spending below your income, you’ll have a surplus left over to invest or save,” she says. “When you live above your means, you’re constantly in debt and never have a chance to build wealth.”
Pant advises that people should be mindful of their spending and eliminate any unnecessary expenses. “It’s easy to fall into the trap of keeping up with the Joneses,” she notes. “But if you can avoid lifestyle inflation, you’ll be well on your way to building wealth.”
3. Ramit Sethi – Increase your income
Ramit Sethi, the founder of I Will Teach You To Be Rich, believes that increasing your income is one of the best ways to build wealth. Sethi advises people to focus on their careers and take steps to increase their earning potential.
“Most people focus on cutting expenses, and while that’s important, there’s a limit to how much you can cut,” Sethi says. “But when you increase your income, the sky’s the limit. The more you earn, the more you can save and invest.”
Sethi notes that earning more money doesn’t necessarily mean working longer hours or sacrificing your work-life balance. There are many ways to increase your income, including negotiating your salary, starting a side hustle, and investing in your education and skills.
4. Erin Lowry – Start investing early
Erin Lowry, the author of Broke Millennial Takes On Investing, advocates for starting investing early. “The earlier you start investing, the more time your money has to grow,” she says. “And compounding interest can really work wonders over time.”
Lowry advises that people should take advantage of employer-sponsored retirement plans, such as a 401(k), if available. “These plans often offer matching contributions from your employer, which is essentially free money,” she notes.
Lowry also suggests investing in low-cost index funds, which offer diversification and can help minimize risk. “Investing can be intimidating, but it doesn’t have to be complicated,” she says. “And the earlier you start, the better off you’ll be.”
5. Grant Sabatier – Focus on the big picture
Grant Sabatier, the author of Financial Freedom, takes a big-picture approach to wealth building. Sabatier advises people to identify their priorities and what they’re passionate about, and then align their finances with those goals.
“Money is just a tool,” Sabatier notes. “It’s what you do with it that matters. If you can align your spending with what you truly value, you’ll find that you’re happier with less, and you can build wealth more easily.”
Sabatier also believes in taking calculated risks and investing in yourself. “Wealth building isn’t just about saving and investing,” he says. “It’s also about taking smart risks and investing in yourself and your potential.”
In conclusion, building wealth requires discipline, patience, and hard work. But with the right strategies and mindset, anyone can achieve financial success. Whether it’s saving diligently, living below your means, increasing your income, investing early, or focusing on the big picture, these five personal finance experts offer valuable insights and tips for building wealth over time.
(Note: Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)
Speech tips:
Please note that any statements involving politics will not be approved.