Want an ‘Unfair’ Wealth-Building Advantage? 3 Things Ramit Sethi Says To Do
Written by
Adam Palasciano
Edited by
Nicholas Morine
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Building wealth over the long term is crucial to financial success, especially later in life when you enter retirement. Building wealth can seem overwhelming, but it certainly doesn’t have to be.
There are several strategies that you can employ that can give you an “unfair” advantage and help you get ahead of the pack.
3 Financial ‘Levers’ To Take Advantage Of
In his recent email newsletter, financial guru Ramit Sethi outlines the three “levers” you can use to grow your wealth:
- Automation: Automation is key to building wealth. You can automate deposits to your high-yield savings as well as toward your investing accounts, which will help you build wealth seamlessly. One smart tip is to set automatic deposits to both your savings and investment account on the same days you get paid each month. This way, the money moves out of your checking account automatically and you probably won’t feel the difference. Just be sure to actually invest the cash once it’s transferred to your investment account.
- Compound interest: One beautiful thing about automated saving and investing? This practice leads to increased compound interest. Since you’ll be adding funds to your accounts consistently using automation, your money can grow exponentially thanks to the magic of compounding. Remember that the earlier you start saving and investing, the more time your money has to grow.
- Using your unique talents, skills and experience to your advantage: Above all, you are your best asset. Don’t be afraid to showcase your unique talent, skills, and experience to your advantage. This can mean starting your own business (even if you have to invest some money to get started), getting a raise or promotion at your current job (even if you have to ask), or getting a new job to get a big salary bump.
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