Here are 25 small ways to help grow your wealth. Here’s to firecracking results!
High-Yield Savings Accounts – Earn yields of 5.00%+ and get cash bonuses for signing up. Just make sure the institution is FDIC-insured. Where? Banks like Ally, Marcus, SoFi and others on www.bankrate.com.
Micro-Investing Apps – Robo advisors like Acorns or Stash round up your purchases and invest the difference. A hassle-free way to invest.
Employer-Sponsored Retirement Plans - If your employer offers a 401(k) match, contribute enough to get the full match.
Automatic Transfers - Set up automatic transfers to your investment or savings accounts for effortless saving! Transfer from checking to saving or checking to your investment account.
Investing in Index Funds - Index funds are a low-cost way to invest in a broad market segment. They offer diversification and have historically provided solid returns. Even small, regular investments in index funds can grow significantly over the years.
Paying Off High-Interest Debt – Rank your debt by interest rate and put extra payments towards the highest one.
Investing in Skills and Education – Take courses, get certified, learn new skills for more opportunities. Check out Capital One and Khan Academy’s Financial Literacy course.
Building an Emergency Fund – Experts suggest having 3-6 months of necessary living expenses set aside for emergencies. Keep it in a HY Savings account to earn maximum interest!
Health Savings Accounts (HSAs) – Many employers offer HSAs which can cover medical expenses and provide tax advantages. The 2024 limit for singles is $4,150 and $8,300 for families.
Cashback and Rewards Programs – Using cashback and reward credit cards for purchases you’re already making can save you money. Apps like Rakuten, Ibotta, and Honey can also help to get cash back or discounts on everyday shopping.
Starting a Side Hustle – Make additional income to save, invest or pay off debt. Monetize those skills (graphic design, tutoring, dog walking, and social media management through platforms like Upwork or Fiverr).
Low-Cost ETFs – Invest in low-cost diversified index funds at Vanguard or on your investing platform of choice.
Practice Mindful Spending – Track your expenses for a week and see how many impulsive purchases you make. Try asking yourself if it is a need or a want. Can you find an extra $20? (see #18)
Meal Planning and Cooking at Home – Plan meals for the week, use leftovers, buy in bulk to save if possible, buy produce in season (it’s cheaper and better!) and then go out and treat yourself every so often.
Carry a Refillable Water Bottle – Reduce waste and save money by carrying your own water bottle.
Negotiate Bills and Subscriptions – Make a list of all recurring services, pick one per week to call and try to renegotiate their rates or ask for discounts and don’t forget to cancel unused subscriptions.
Read Personal Finance Books – Some of my favorites are: The Simple Path to Wealth by JL Collins, How to Adult by Jake Cousineau, The Automatic Millionaire by David Bach, The Little Book of Common Sense Investing by John Bogle and The Index Card by Olen and Pollack.
Open a Roth IRA and start funding it up to $7,000 this year. That’s only about $20 per day.
Save Windfalls – Take any bonuses, tax refunds, gifts, lottery winnings, gig work income and put it straight into your emergency savings or investment account.
Dividend Reinvestment Plans (DRIPs) – When you automatically reinvest your dividends, you buy more shares over time and allow your money to compound.
Sell Unused Items - Turn clutter into cash on eBay, Craigslist, Facebook Marketplace or others. Take that money and put it into emergency savings or your investment account.
Network and Seek Mentorship – Attend industry events, join professional organizations or school networking groups and seek mentors who can help guide you.
House Hack – Purchase a property, live in part of it and rent out the rest to cover (or exceed) costs.
Explore Co-Living Arrangements – Share the financial burden by splitting rent, utilities, groceries and upkeep/maintenance costs.
Build Credit Responsibly – Find ways to build a solid credit profile for free! Open up and maintain a few no-fee credit cards, pay all bills on time, vary the types of credit you have, keep credit utilization low and check your credit report for mistakes at least once per year.
