6 Tiny Changes To Make That Will Help You Build Wealth
Written by
Cindy Lamothe
Edited by
Amen Oyiboke
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Everyone thinks that wealth is built by making huge changes like scoring a high-paying job or making a fortune investing in the right stocks. However, in most cases, building wealth is the accumulation of many small and savvy changes that compound over time. Many of these are habits you can adopt into your lifestyle.
Below are some of the best tiny changes you can make to help you build wealth without winning the lottery.
Automate Your Money Moves
“One small, impactful change I’ve seen work for clients is setting up automatic transfers to a high-yield investment account,” said Nischay Rawal, CPA and founder of NR Tax & Consulting.
By doing this, he said you’re not only putting money aside regularly but also benefiting from compound interest over time.
“This requires minimal effort and builds wealth consistently without much intervention,” Rawal said.
Andrew Lokenauth, money expert and owner of BeFluentInFinance, agreed. He suggested setting up these automatic transfers once and letting your money grow while you sleep.
“Connect your checking account to a high-yield savings account–it takes 5 minutes,” said Lokenauth.
Moreover, he recommended creating a monthly auto-transfer to your investment account — even $25 helps build something.
“Set up automatic bill pay for everything–no more late fees!”
Find Out: 10 Genius Things Warren Buffett Says To Do With Your Money
Regularly Review Monthly Subscriptions
Another habit, according to Rawal, is to adopt is to review and adjust monthly subscriptions.
“Many people overlook recurring charges that they no longer find necessary. By canceling unused services, clients have reallocated those funds into investments or savings, leading to a noticeable increase in their financial growth over time.”
Involve Family Members in Business Operations
“Consider engaging family members in business operations, as highlighted in a tax-saving strategy for small businesses I often recommend,” said Rawal.
This not only reduces your tax liabilities, he noted, but also reinforces family involvement in wealth-building activities.
Take Full Advantage Of Employer Retirement Plans
According to Ben Klesinger, founder and CEO at Reliant Insurance Group and Helping Hand Financial, one small tweak he often recommends is utilizing employer retirement plans to their full potential.
“By contributing enough to get the maximum employer match, you’re essentially receiving free money, which greatly accelerates wealth-building without extra effort,” said Klesinger.
He believes this also helps in developing a habit of consistent saving, which is crucial for long-term financial growth.
Optimize Your Insurance Policy Frequently
Another effective method Klesinger advised, is reassessing insurance coverage to reflect your actual needs, freeing up funds for better use.
“For instance, clients with high net worth who optimize their insurance policy often find they can reduce costs by adjusting secondary home liabilities or bundling coverage,” he said.
This extra cash can then be redirected into investments more strategically geared towards financial goals.
Contribute As Much As You Can to Roth IRAs
Lastly, experts emphasize not underestimating the power of Roth IRAs for tax-free growth.
“If your income allows you to contribute, start automatic deposits into a Roth IRA,” said Klesinger.
The tax-free withdrawals during retirement are a huge advantage and can significantly boost your financial standing in the long run without the need for constant oversight.
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