7 Ways People Can Build Wealth, According to Redditors
Written by
Aja McClanahan
Edited by
Travis Woods
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The road to riches doesn’t have to be elusive or complicated. Of course, there are ways to reach this goal, but it helps to choose a path others have tried and proven to work. According to a few thousand Redditors, here are some ways to build wealth no matter where you start out in life.
1. Choose a Boring Business
While sexy businesses in tech, sustainability or finance get all the fame, it’s not uncommon for millionaires to arrive at this destination with a rather “boring” business — pool cleaning, lamp shade manufacturing, fence installation, etc.
Even if you launch out and raise funds for a million-dollar start-up, the concept is the same — investing your time and money in assets that appreciate over time – which brings us to the next point.
2. Don’t Just Save, Invest
Simply putting your extra money into a savings account will barely let you keep up with inflation, let alone build wealth. Understanding how compound interest works to multiply your wealth will motivate you to set aside more money to invest.
Use the Go Banking Rates savings calculator to determine how much you’ll earn when you save your money at lower interest rates versus investing it in appreciating assets like the stock market, real estate or a business.
3. Spend Less Than You Earn
A common thread across many of the comments on this Reddit thread is the idea of living below your means. This will give you more money to save and invest over time, which can definitely lead to building a substantial nest egg.
4. Get Educated About Money and Finance
A number of Redditors mentioned starting from scratch while being pretty ignorant about how money worked. The ones who decided to educate themselves by reading books or exposing themselves to other educational resources believe it was time well spent, with many going on to become rich or even wealthy. If you’d like to do the same, check out the Go Banking Rates guide, Best Finance Books: 10 Essential Books for Financial Literacy.
5. Marry Well
Though it would be nice to marry into wealth, this has more to do with marrying a like-minded partner. Teaming up with someone who shares your views on money can be one of your most valuable assets. There will be fewer money fights and more time to focus on managing money wisely, plus the added income can be an extra boost for building wealth.
6. Avoid Debt
Though the internets hardly agree on whether this applies to “good debt” or “bad debt” most agree that using cash to cover your needs (and wants) is ideal. At a minimum, avoid high-interest debt because it can detract from your ability to save aggressively.
7. Take Extreme Responsibility
Many of the Redditors on this thread admitted to taking responsibility by changing their own story. Many decided to improve their lives through a series of actions ranging from getting a better job to learning a new skill and even doing things that felt very risky, like investing in real estate.
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