Wealth Building in 2022: Use These Techniques to Better Manage Your Money in the New Year
With inflation continuing to pummel bank accounts across the board (to the point where even millionaires are concerned about it), Americans are keen on making money in the new year. To do so, they may want to look back on the wealth-building techniques they used in 2022.
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Invest in the Stock Market
A new poll from CNBC found that 27% of Americans invested in the stock market in 2022 to build wealth. Though it wasn’t a great year for investors, the stock market has proven to be nothing if not resilient and has recovered from every bear market in history with strength. Financial advisors almost always recommend riding out the lows of the stock market and keeping one’s eye on the prize for the long haul.
Take Up a Side Hustle
The poll found that 20% of Americans started a side hustle or got a second job to make more money in 2022. Other research suggests this number could be higher. According to a LendingTree survey released in December, 44% of Americans said they have a side hustle — up 13% from 2020.
Negotiate A Higher Salary
The CNBC poll found that 15% of Americans negotiated a higher salary to generate more wealth in 2022. A survey by FlexJobs conducted between February 23, 2022 and March 7, 2022, found nearly half of respondents (47%) felt empowered and successfully negotiated their salary, but that 52% also felt empowered — yet did not hold successful salary negotiations.
Invest in Real Estate
CNBC’s poll found that 12% of Americans invested in real estate in 2022. Real estate has become an increasingly popular investment. According to a Stateline analysis of data provided by CoreLogic, investors bought 24% of all single-family houses sold nationwide last year, up from 15% to 16% annually going back to 2012. In 2022 that number fell slightly to 22%.
Invest in Bonds or CDs
Twelve percent of Americans invested in bonds or CDs (certificates of deposit) in 2022, according to CNBC’s poll. This is generally considered a smart long-term tactic because such investments carry little to no risk.
Start Your Own Business
The entrepreneurial spirit was strong in 2022, with 11% of Americans starting their own business in 2022, per CNBC. It’s also a very attractive prospect to become your own boss, and to do business your own way.
Switch Careers to a More Lucrative Job
In 2022, 10% of Americans switched to careers to land a more lucrative job, CNBC’s data suggested. This makes sense given that it was the year when the terms Great Resignation and quiet quitting became popularized.
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