11 Ways To Break Free from the Poverty Level and Begin Building Wealth
Written by
Jordan Rosenfeld
Edited by
Chris Cluff
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Though the United States is one of the wealthiest countries in the world, 11.5% — or nearly 38 million Americans — live in poverty, as of 2022. That translates to just under $30,000 per year for a family of four and just under $15,000 for an individual.
While breaking free from the poverty level is difficult, it is not impossible. Experts explain some strategies to move the needle that anyone can do.
Small, Consistent Steps
There’s no single path out of poverty, but staying motivated and taking small, consistent steps can really make a difference over time,” said Jennifer Kropf, a certified financial education instructor and the founder of Wealthy Woman Finance.
“When I first started in this field, I was frustrated by how … some of the quick tips missed the bigger picture,” she said. “It takes real, sustained effort and often outside support.”
Get Clarity
Focus first on getting a full understanding of your financial situation without judgment, Kropf suggested. “This provides clarity. Look at expenses, income, debts, and consider how past experiences shape current behaviors. With understanding comes empowerment.”
Seek Community Resources
Community resources can offer crucial aid, whether it helps with job training, financial coaching, food, housing assistance or more, Kropf said.
“But it takes perseverance to find the right programs,” she said. “Don’t get discouraged if the first place isn’t a good fit. Nearby nonprofits, social services and places of worship are good places to ask.”
Adjust Your Mindset
Making a financial shift is as much about mindset as money management, Kropf said. “Be kind to yourself through the process. Celebrate any wins, big or small. And try not to compare-every path is personal. Staying hopeful and tapping people who want you to succeed can sustain you on hard days.”
Ultimately, real change starts from within, she said, but it is useful to find guides who’ve been there to make the climb easier.
Have Patience
Breaking free from the poverty level and building wealth is not an overnight process, said Julia Mathers, a marketing executive at Pasha Funding.
“It requires dedication, hard work and a clear vision of what you want to achieve,” Mathers said. “It is also important to understand that it is not a one-size-fits-all approach. Everyone has different circumstances and goals, and the path to success will be different for each individual.”
Set Small, Achievable Goals
Mathers suggested that the best way to begin building wealth is to start with small, achievable goals. “This can be done by creating a budget and tracking your spending, as well as setting aside a certain amount of money each month for savings.”
Mathers stressed the importance of creating an emergency fund that can be used in case of unexpected expenses.
Leverage Micro-Investing Platforms for Spare Change
John Browning, financial advisor and founder of Guardian Rock Wealth encouraged people to explore micro-investing platforms that enable them to invest spare change from everyday transactions.
“Apps rounding up purchases to the nearest dollar and investing the difference can accumulate substantial savings over time,” he said. “This approach makes investing accessible to those with limited resources, creating a habit of wealth-building without a significant upfront commitment.”
Consider Community Investment Clubs
Community investment clubs could be a unique way to build wealth with the help of friends or colleagues, Browning said.
“These clubs bring together individuals with modest means to pool resources for joint investments,” he said. “Whether it’s real estate, small businesses or other opportunities, collective investment enhances purchasing power and diversifies risk.”
This approach also fosters a sense of community empowerment while providing access to investment avenues that may be challenging for individuals to pursue alone, he said.
Take Care of Your Health
Breaking free from poverty and beginning to build wealth is about more than simply investing, doing side jobs, being good at budgeting, and so on, according to Karl Tippins, finance writer and editor in chief of Interest Rate. It is also about health.
“Whatever goals you have, no matter how good they are, if your body is deteriorating, the process will be disastrous for you,” he said. “To attain your objective, you must prioritize your health as well, so that your mind and body are constantly in excellent shape to carry out your plans.”
He pointed out that plenty of wealthy people have wasted their hard-earned money on medical bills because they neglect their health.
Invest in Education
Grow your knowledge and skills by utilizing free and low-cost services, such as books and internet at a local library.
“Invest first in education and skills that employers are looking for,” said Michael Hammelburger, CEO and certified financial expert with The Bottom Line Group. “Ongoing education raises your earning potential and employability.”
Make Connections
Trying to struggle out of a tough financial spot alone can be tough. Hammelburger suggested you try to make connections within your industry and look for mentorship.
“Make use of the systems of support and community resources; they can offer insightful information and beneficial opportunities,” he said.
Avoid High-Interest Debt
When possible, Hammelburger cautioned, “Steer clear of high-interest debt and make a methodical effort to pay off any debt you already have.”
These debts an accumulate rapidly and make it incredibly challenging to get ahead.
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