Learning how to save money is a big reason I was able to pay off $40,000 in debt, but do you know what helped me achieve that goal even quicker?
Building wealth and earning more money. It makes you richer and helps you save and hit your money goals even faster.
Here’s a list of 6 ways to build wealth and get richer today. Incorporate these tips into your life and you’ll see more money coming into your life.
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1. Automate savings
Create a set-it-and-forget-it strategy by automating your savings. You can do this by setting up automatic transfers to go from your checking account to your savings account or investment account. This is ideal for people who want to “pay themselves first” on payday. Instead of manually putting money into savings, it’s done automatically so you don’t even think about it.
Once you create a budget, you’ll have a general idea of how much money is leftover that can be put into savings. If you don’t have any money left over, this is time to reduce expenses and learn how to save money. Set up an automatic transfer with the leftover amount biweekly or monthly. If you save $500 a month, that’s $6,000 in 1 year. That’s enough to max out an IRA account in 2020!
Setting up automatic transfers is unique to each bank and investment account. Some accounts let you do this online via dashboard or you have to contact a bank teller or customer support representative to set it up. Most banks and investment accounts will have information about this in the settings area.
I learned this method in 2 different books that I recommend reading: 1) The Automatic Millionaire and 2) I Will Teach You To Be Rich. Both books have great lessons about paying off debt and building wealth in the long-term.
2. Get a side hustle and turn it into a full-time career
I turned my blogging side hustle into a full-time career. I’m going on my 4th year in my small business and it’s the reason why I paid off my student loans and built my net worth so quickly.
Find a side hustle that you genuinely enjoy and can make money from. I tried several different side hustles before landing on blogging full-time, so you may want to do the same. I recommend trying out:
- Creating an Etsy shop and selling printables
- Becoming a Pinterest Virtual Assistant and helping businesses succeed on Pinterest
- Working as a Facebook Ad Manager and creating high-performing ads for small businesses in your city
- Starting a blog that helps people around the world
- Becoming a remote bookkeeper who helps small businesses
Even if you don’t want your side hustle to become a full-time career, side hustles are still a great idea because you’re creating more income streams. If the economy takes a hit or you lose a job, you’ll be thankful to have multiple income streams.
3. Invest time in yourself
You can build wealth just by improving your physical and mental well-being. When you invest time in yourself, you’re increasing confidence, happiness, and you show up in life so much better.
You can invest in yourself by:
- Spend time decluttering and organizing your home
- Starting a new hobby like cooking, crocheting, painting
- Get a personal development membership
- Taking 30-60 minutes a day to do a physical activity you enjoy like walking your dogs, riding a bike, or hiking
- Reading a self-improvement book
- Learning a new skill via YouTube (I taught myself how to Crochet this way)
When you invest time in yourself and your well-being, you show up in life the best version of yourself.
Related: 6 Ways To Invest In Yourself
4. Negotiate your salary
Knowing how to negotiate your salary is a skill everyone should know about.
Aside from negotiating your salary, you can also ask for tuition reimbursement, help with childcare costs, professional development and education courses, or even the flexibility of working remotely.
In order to have a successful negotiation, you need to build a case on why you deserve a salary raise or other benefits. Most people have no idea they can negotiate their salary or benefits, but doing so can mean a massive difference in savings.
Say you land a job with a salary $10,000 higher per year than someone who didn’t negotiate at all, that higher salary has the potential to be hundreds of thousands in retirement.
5. Pay off debt in a way that best suits you
If your goal is to pay off debt and start building wealth ASAP, there are a few methods to do this. First, we need to know the different methods of paying off debt. The most common methods are the avalanche method and the snowball method.
The avalanche method works by you paying off your highest interest rate debt first. Then you go to your second highest interest rate debt and so on. The snowball method works by paying off the credit card with the smallest balance and working your way up from there.
Let’s look at an example of Mary’s debt.
Debt 1 (personal loan): $3,000 at 9% interest rate
Debt 2 (student loan): $8,000 at 7% interest rate
Debt 3 (credit card): $5,000 at 24% interest rate
Mary would want to pay off her debt in this order if she was using the avalanche method: Debt 3, Debt 1, then Debt 2.
If Mary wanted to use the snowball method, she’d start with the smallest balance, so it would also look like: Debt 1, Debt 3, then Debt 2.
If you struggle with staying motivated, I recommend using the snowball method. If you want to save the most money on interest over time, use the avalanche method.
6. Love your money
I know I know, it sounds crazy, but this is important. When you love your money, it’ll stick around more and you’ll even see more coming in. What’s your relationship like with money? Do you talk badly about your money? Do you think money is a major source of stress?
If so, I recommend listening to the podcast, “Your Relationship With Money” by Natalie Bacon. You learn how to create an amazing relationship with money. This is powerful stuff that everyone needs to know about.
I used to dread logging into my bank account or checking in with my budget. Now I love it and pay attention to my money just as I do with other things in my life.
Incorporate these wealth tips into your life and you’ll see money flow into your life so much more.
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Do you use any of these methods to get richer?
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