Erin Talks Money: 7 Choices That Build Real Wealth
Written by
Katie Wudel
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If you’re just beginning your wealth journey, you might be looking for ways to quickly build your nest egg. Personal finance Youtuber Erin Moriarity recently offered tips to those looking for guidance on how to manage their finances.
Moriarity shares her journey and the pivotal choices that have significantly impacted her financial well-being. Here are seven of her tips for building real wealth.
Live on Half Your Income
Moriarity highlights the power of living on one income and saving the other, a strategy she and her husband adopted. By budgeting based on a single income, they maintained low living costs relative to their total income, allowing for aggressive savings and the potential for early retirement.
“This keeps us on a really good financial footing and ensures that no matter what happens, whatever situations are thrown our way, either of us could afford to pay our bills,” said Moriarity during an episode of her show. “On the other hand, this keeps the door open and for us to be really aggressive savers.”
Start Your Own Business
The Erin Talks Money host says starting her own business was a game-changer. Despite the risks and initial struggles, her entrepreneurial journey led to a significant increase in income, providing financial growth and personal satisfaction. “In about two years’ time I was able to increase my income about five-fold and there’s no way I could have scaled like that working for anyone else,” said Moriarity.
Align Financial Goals with Your Partner
Moriarity emphasizes the importance of sharing similar financial goals with your partner. This alignment has been crucial in her journey, allowing her and her husband to work toward common objectives like maximizing retirement accounts and potentially retiring early.
Invest Early and Regularly
From a young age, Moriarity was taught the importance of investing. Starting as early as eight or nine, she developed a habit of regular investment, understanding the compounding potential over time. She stresses the importance of this early start in investing, which significantly amplifies the growth of wealth over a lifetime.
Leverage Living at Home Post-Graduation
Moriarity acknowledges the benefits of living at home after college, allowing her to save a significant portion of her income. This decision accelerated her financial progress, allowing her to remain debt-free and purchase a home.
Resist the Urge to Upgrade Prematurely
Don’t make unnecessary upgrades, particularly with cars. Moriarity’s philosophy of driving a car until it’s no longer serviceable has saved her from the debt trap and allowed her to allocate funds to better investments.
Track Your Expenses and Budget Wisely
Understanding and tracking expenses is critical, regardless of income level. Moriarity believes that knowing where every dollar goes is the key to avoiding lifestyle inflation and making informed decisions that align with one’s financial goals.
The Takeaway
Wealth building is not just about the big decisions, but also about how smaller, consistent choices can lead to substantial long-term gains. Moriarity’s approach is practical and grounded in real-life experiences, making the advice relatable and achievable for the average reader. Her journey is a testament to the fact that disciplined financial habits, coupled with smart choices, can lead to significant wealth accumulation and financial freedom.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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