The 7 Best Ways to Build Wealth Starting Today, According to Financial Planners

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When it comes to building wealth, it’s not always about making more money—sometimes it’s about using what you have to your advantage. Whether that means opening a new savings account, leveraging your retirement options, or giving your money time to grow, building wealth can often be much simpler than it appears.

We put together some of the best ways you can start today, according to the experts.

1) Figure out your net worth.

Before you start growing your wealth, it’s important to first understand exactly what you already have

“Most people have never visually seen their net worth on paper, and it’s usually an eye-opening exercise,” says Michael Pappis, financial planner.

Net worth is the combined value of your assets minus the value of your liabilities. To calculate this, simply add up your home’s value, any investments, bank account balances, and other remaining assets. Then, subtract any loans or debt you might have. Once you know your net worth, you can properly plan for what’s next.

2) Start saving automatically.

One of the easiest ways to build long-term wealth is to automatically set aside money that will grow over time.

"A lot of places out there right now, like Betterment, let you automate savings into your brokerage accounts every month," says Christine Centino, financial planner. “You forget about it, and then it starts to accumulate.”

By deducting a certain amount from your paycheck each week, you can start growing your savings and set yourself up for success.

3)Take advantage of your employer's 401(k) program.

A 401(k) match is a program where your employer contributes a certain amount to your retirement savings plan based on your own contribution. If your company offers this perk, it’s a great way to start building long-term wealth.

"If your employer matches 100% of your contribution up to 4% of your salary, I'd contribute at least 4% to the plan," Pappis says. "For an easy example, if you're making $100,000, you will contribute 4% of your salary, $4,000, to your plan, and then your employer will contribute $4,000 to your plan. You'll save as much as $8,000," he says.

Keep in mind that the earlier you start saving, the more time your money has to grow.

4) Look at your cash flow.

A simple, effective way to start growing your wealth is to first take a look at where you’re spending your money.

“To gain a better understanding of what you’re spending on a weekly or monthly basis, examine your bank accounts and credit card statements,” suggests Pappis. “From there, you can highlight the places you don’t want to be spending money and start curbing your spending there.”

Whether it’s shopping habits, eating out or monthly memberships, cutting out an unnecessary spending can be a great way to start building wealth.

5) Don't just let money sit—keep it growing.

If you have accounts that are sitting untouched in the bank, ask yourself: are they earning the interest they could be?

There are several high-yield savings account or No-Penalty CD account options where your money could earn up to 200 times more than a typical .01% APY. These accounts allow you to have your savings accessible at your disposal, while still growing over time.

“That could be a brokerage account for a down payment on a home or a high-yield online savings account for your emergency fund,” Pappis suggests.

6) Make your savings a priority.

For financial planner Colin Moynahan, building wealth is all about saving for the future, versus saving for short-term goals.

“What happens, is they get in about four or five months and they actually want to go on a trip, and say, 'well, instead of saving this month, we'll just go do this.' Then, the next month, it goes to replacing the refrigerator. The month after that, they make up some other excuse. And they never get back in the habit of doing it because they never changed their habits in the first place,” Moynahan notes.

Instead of treating saving like a purchase, treat saving like a habit—and see how effectively you can build wealth over time.

7) Be patient.

As with any other goal, building wealth takes time. That’s why Pappis’ best piece of advice is to simply be patient.

"When it's done correctly, it takes time," he says. "Save, invest, and build wealth. There's no secret formula for doing it quickly."

When it comes to saving and building wealth, PurePoint Financial is committed to helping you earn more, your way. Give us a call to learn how we can help you bank with confidence and earn greater peace of mind.

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