If you’re unsure how to start building wealth, here are 5 easy tips you can start implementing today. 💸
📈 Savings strategy.
If you don’t already have an emergency fund for ~3-6 months of essential expenses, start saving now! Keep your emergency savings in a high-yield savings account (HYSA) for liquidity and growth. Top HYSAs can offer 4.20-4.35% APY (Kiplinger, October 2025) versus a national average of 0.40% for traditional savings accounts (Federal Deposit Insurance Corporation via FRED, September 2025).
💰 Pay down debt vs. invest.
Direct your money where it will benefit you the most. If your expected investment return is higher than your debt interest rate, make minimum payments on debt while investing the rest. If the interest rate on your debt is higher than what you can expect to earn on your investments, then pay down your debt before investing.
Here’s a simple example:
Let’s say you have an extra $10,000 on hand and $10,000 in debt with a 4% interest rate. Historically, your investments have given you a 7% return. You have two choices:
- Pay down your $10,000 debt early, saving 4% interest = $400 per year saved.
- Invest $10,000 instead, earning 7% = $700 per year gained.
By investing, you essentially come out $300 ahead ($700 return – $400 potential interest savings).
🌱 Invest early and harness compounding.
The earlier you invest, the longer your money can grow through compounding (earning returns on your returns). Warren Buffett is a prime example of the power of compound growth and time in the market. Watch Grace’s video “Warren Buffett Investing Lesson” on our YouTube channel to learn more!
📊 Consistency and small changes can lead to big results.
For example, increasing your retirement contributions by 1% each year or automating savings so you “pay yourself first” before covering expenses. Think long term!
🛍️ Avoid lifestyle creep!
As your income grows, resist the urge to increase spending at the same rate. Set rules to manage spending with increases to your income! For example, save X% of your increase in pay.
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