Forget the Gimmicks: Here Are 4 Ways to Build Real Wealth

The Following Post Is a Guest Post from ClubThrifty

Google “make more money” and you’ll come up with about 4.5 billion results! Seems like quite a few of us are trying to improve our financial situation, huh?

When it comes to increasing income, we’ve all heard catchphrases like “in less than 30 days” and “in your spare time”. While many work-from-home options are totally legit, the majority won’t net you any significant increase in income.

If your goal is just an extra $20 here and there for fun, that’s fine. Sure, you can make a few bucks taking online surveys. Absolutely, you can take on a new part-time job. There’s nothing wrong with those methods.

What we’d like to focus on right now, however, is good, straightforward methods you can use to build significant wealth, without the gimmicks. So, if your primary goal is to increase your income in a life-changing way, you’ll want to keep reading! We’ve got some of the best strategies for you to start building real wealth.

Invest in Your 401(k)

Eventually, we all have to leave our working days behind, and planning ahead for that is crucial. If you don’t want to be stuck eating rice and beans in retirement, you need to zero in on your retirement plans.

A popular way to save for retirement is by utilizing a retirement account like a 401(k) plan. As an employer-sponsored retirement account, the 401(k) enables workers to invest a portion of their income automatically every month.

Earnings in a traditional 401(k) are tax-deferred, so your contributions – as well as the earnings from them – are only taxed when you withdraw those funds at retirement age. For many, this is especially appealing because you get to keep more of your money up-front.

Investing in a 401(k), 403(b), or similar work-sponsored account can also help you build wealth through a company match. For example, your employer may match up to 4% of what you put in. These “free money” contributions can be an excellent way for you to save even more toward your retirement goals.

Take advantage of the power of time and compound interest. The sooner you can start and/or increase your contributions in a 401(k), the more time you give your money to grow!

Invest in Real Estate

Real estate is one of our favorite ways to diversify our income streams and build more wealth.

While retirement accounts are important for your future, real estate differs in that it offers you substantial income in the present. In addition to (hopefully) increasing in value, the rental income from your property can provide a nice bump in monthly income, as well. Then, down the road when you decide to sell, you’ll also receive the profits from the sale.

If owning real estate appeals to you but you’re turned off by some of the downsides (like expensive down payments and the hassle of maintenance issues), take some time to review companies like Fundrise. They’re essentially crowdfunded real estate opportunities that enable investors to get in on the action for as little as $500.

Whether you’re more interested in a brick-and-mortar property or a crowdfunding option, real estate provides some amazing opportunities to really gain momentum in your investments.

Start Your Own Business

Starting a business is a powerful wealth-building tool because there’s no ceiling on potential income! Going into business for yourself can sound really intimidating. I get that. But the perks of being an entrepreneur are many.

Although it isn’t always possible, an ideal business is one that enables you to earn passive income. That way, once the business is set up, you can begin increasing your profits without investing too much more time or effort. If you can find yourself a good personal gig that earns significant passive income, that’s a pretty sweet way to build your wealth.

For example, when you write a book or create an educational course, you put a ton of work into it. Once it’s done, however, you can continue earning money off its sales for years to come!

Destroy Consumer Debt

We’re pretty passionate about this one. If you’re trying to build real wealth, consumer debt acts like a giant weight hanging around your neck. While getting debt-free might be less exciting than earning extra money, it’s a crucial step on the path to building true wealth.

Although many Americans consider debt to be a “normal” fact of life, that doesn’t mean you have to! Think about it: Do you want to continue sending half your paycheck to somebody else every month, or would you rather keep that money for yourself?

The answer is pretty obvious, right? Honestly, just imagine the possibilities if you weren’t stuck up to your neck in consumer debt. They’re practically endless!

Credit cards, car loans, student loans – they’re like a trap. As you know, most loans come with hefty interest charges, so you end up paying a lot more for everything than it originally cost.

Debt also destroys your ability to save and build wealth. That’s why it’s imperative to get yourself out of debt as soon as humanly possible. I mean, get yourself laser-focused until it’s gone!

The average monthly car loan is now over $500! If you’re paying on two cars, that could be $1,000 a month just in car payments! That’s insane!!!!

What could you do with an additional $500, $600, or even $1,000 a month? Maybe you could save for a down payment on a house or invest that money and retire early. Perhaps you could take a chance on a new career. Or, maybe you could just enjoy the freedom of no longer living paycheck to paycheck.

Whatever your big goals are, you’ll get there much faster once you destroy your debt!

Final Thoughts on Wealth-Building

Let’s face it – we’re all sick of money-making gimmicks…but that doesn’t mean there aren’t legitimate ways to grow your wealth! You can make some serious bank and increase your net worth with any one of these strategies we’ve talked about.

Destroy your debt, save for retirement, invest in real estate, and maybe even start your own business. Use a few of these ideas together, and you’re looking at some real, significant wealth-building potential! At the very least, you’ll be on the path to retirement, leaving a positive legacy of sound money management for your loved ones to learn from in the future.

For additional investing and wealth building articles please see our investing category.

Kate Underwood is a freelance writer and staff writer for Club Thrifty, a website dedicated to helping people dream big, spend less, and travel more.

How are you saving for real wealth? Let us know in the comments!

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