5 Ways To Live Richer Throughout Your Adult Life

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There are many definitions of a “richer life.”

Are you trying to build wealth? Are you trying to spread wealth in ways that will repay you? Are you simply trying to find fulfilling experiences to spend money on?

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All of these definitions can contribute to living a richer life if you execute them correctly. GOBankingRates spoke to financial experts to pin down the best actions to take to live a richer life in every sense of the word.

1. Assess Your Situation To Make Actionable Goals 

To grow wealth, you should be learning from past experiences and challenging yourself to reach new goals for the future. Take time to celebrate your personal wins, rather than getting caught up in what you believe you should be achieving according to the people around you.

A recent Laurel Road survey found that 69% of millennials and those in Gen Z believe that their peers are more concerned about their financial future than they are. SVP and Head of Brand and Partnerships at Laurel Road, Christina Klenotic, said that this is a common trap to fall into, but constantly focusing on what other people are doing will keep you from growing financially.

Building Wealth

“To truly achieve mental wealth and pursue a richer life, start by understanding your finances and setting goals for what you hope to achieve.” Klenotic went on to say that these goals can be milestones like buying a house, or they can be related to causes you find important. Either way, consistently having goals to reach will result in a constant elevation of your personal finances. 

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2. Pay Off Debt

If you have debt, one of the first goals you should set is to pay it off. Klenotic recommends the 50/30/20 rule where 50% of your income goes toward your needs (housing, food, and bills), 30% goes toward your wants (travel and entertainment), and 20% goes toward paying down debt.

If you’re paying off student loan debt, there are credit cards that give a percentage back toward your student loan debt, such as the Laurel Road Student Loan Cashback℠ Credit Card which offers 2% toward your student loan balance. This can be incredibly helpful toward paying down your debt, provided you pay off the balance every month so you don’t accrue more debt. 

Building Wealth

3. Spend Less Than You Make

Living a richer life means not relying on credit cards to live outside of what you can afford. “Between credit cards and bills, a lot of individuals can actually end up spending more than they earn every month,” Albert‘s Senior Financial Advisor, Daniel Demian, said. “Knowing your bottom line for spending can help you stay on track.” Demian said he calculates that bottom line by subtracting his bills, savings, investments, donations and essential spending (like gas and groceries) from his total income.

In addition to knowing exactly what your personal bottom line is, Demian suggested living below your means so you can save as much as possible. “Living at or above your means, especially as your income increases, leads to ‘lifestyle creep,’ Demian said. “That’s when your expenses increase in proportion to your income. Although a fancier lifestyle can be nicer, it limits how much you can really save every month.”

Building Wealth

4. Invest in the Stock Market

Even with the stock market downturn, experts still maintain that putting your money in the market is a good investment. Markets are volatile, which means they’re bound to come back up. When they do, the money you’ve put in has increased exponentially without you having to do anything but sit back and watch.

“It is important to invest in the long term because even if the market is in flux in the short-term, in the long-term there will eventually be gains you can build from,” Zachary Hamed, co-founder and co-CEO of Clay, advised. “Investing early and being patient with the market is key.”

5. Automate Savings

Building a significant savings will ensure a rich life for decades to come. An easy way to do this is by setting an amount from your paycheck to automatically go into your savings through your bank. “Auto-savings is a great way to not only build up your savings, but also can help you to stick to your budget while growing your funds consistently without even realizing it,” Klenotic said.

Look for a bank with a high yield savings account so your savings is able to earn the most interest possible, then revisit your contributions regularly to determine if that automatic deduction is still working for you based on your income and spending. 

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About the Author

Sam DiSalvo is an LA-based comedian, writer and actor who's performed all over the country. Her written work has appeared in numerous digital publications. As a copywriter, she's worked with a variety of major brands including GoldieBlox and Thrive Causemetics. Sam loves dogs and is currently perusing leisure suits to buy for her corgi mix, Barry

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