6 Ways To Build Wealth in Just 5 Minutes
Written by
Jennifer Taylor
Edited by
Brendan McGinley
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Growing your wealth takes time but the work getting there doesn’t have to be tedious or overwhelming. There’s plenty of quick and easy tasks that can improve your finances with minimal investment.
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Here are six tasks, that can each be completed in just five minutes, to help take your wealth to the next level. They might seem like small moves but completing them can have a huge impact on your bank accounts.
1. Schedule Automatic Transfers to Savings
“The key to developing savings is to just get started, no matter how much you start with,” said Pratik Patel, head of planning at BMO U.S. Wealth Management. “Set a specific amount to be auto-transferred from your checking to savings account on payday so you save without thinking about it.”
Don’t worry if you have to start small; try to increase this number whenever you safely can so you can put aside as much money as possible.
2. Bundle Expenses For Discounts
If you bundle multiple products together, service providers will often offer you a lower rate, Patel said.
“See if your car insurance and renter’s insurance can come from a single provider to save costs,” he said. “Call your internet provider and see if they offer package deals for cable, internet and mobile phone.”
Lowering these bills will leave you with more money to pay off debt and/or start saving, he said.
3. Track Your Spending
“Your bank or financial institution might provide tools that let you view, track and manage your financial information and recurring expenses,” Patel said. “If available, use these to keep track of where you’re spending your money for a few months and look for places where you can cut back.”
He said you might be surprised at how much money you spend on miscellaneous items, which can turn into savings opportunities.
4. Leave Your Credit Cards at Home
“Credit cards are often one of the biggest offenders for debt, so be careful about how you use them in your day-to-day spending,” Patel said. “Unless you’re planning to use your credit cards for specific purchases, leave them at home so you won’t be tempted to use them.”
Making a habit of paying cash ensures you can’t spend what you don’t have, he said.
5. Look at Your Investment Fund’s Expense Ratio
“Many people don’t realize how much investment fees can erode returns over time,” said Samuel Flaten, CFP, ChFC, director of planning at Narrow Road Financial Planning. “And I’m not talking about advisor fees or asset management costs — I’m talking about the internal fees charged by the investment funds themselves.”
He said to either ask your financial advisor to break down your expense ratios or reach out to human resources for help, if your money is in a 401(k).
“Once you know what you’re paying, calculate the dollar cost,” he said. “That percentage might seem small, until you see what it’s costing you in real dollars.”
6. Ensure You’re Getting Your Employer Match
“If you have a retirement plan at work, don’t leave free money on the table,” Flaten said. “Many employers offer matching contributions — often dollar-for-dollar up to a certain percent.”
He said it’s not uncommon for high earners to miss out on this perk.
“I’ve worked with people making over $500,000 who still failed to take full advantage of their employer match,” he said. “For example, if your company matches 3% and you earn $100,000, not contributing 3% yourself means walking away from a $3,000 raise.”
This is an easy way to build wealth, so he said to take full advantage of this opportunity.
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