No matter your income level, it is possible to increase your wealth. Of course, making money is easier when you have money to invest, but that doesn’t have to stop you from starting small. There are several areas to consider when it comes to building wealth on any budget.
Research High-Yield Savings Accounts
A high-yield savings account allows your money to grow without you having to do anything. If you want to know more, you can use an online tool that lists available providers, services, and products you can utilize. You can search for high-yield savings account providers and find personalized rates to help you get the best deal and make the most of your money.
Understand Where Each Dollar Goes
Understand where your money is going, even if it is for seemingly insignificant purchases, like coffee, soda, or alcohol. If your income is unreliable or you don’t have a lot at any one time, the amount you spend on insignificant purchases can add up. Understand the consequences of each purchase.
Avoid Using Debt for Emergencies
If you have a high credit score and no savings, your financial priorities may not be in the right place. Taking on debt can help you build credit, but it isn’t always the smartest financial move. While it is possible to use debt to make money, you need collateral to use debt for investment, and you may not have that right now. Instead of using your high credit score for debt in case of emergency, focus on building an emergency fund. This prevents you from having to pay as much in interest. The money you would have paid in interest will remain yours if you already have some savings to pay for an emergency expense. Keep this money in a separate account and don’t touch it unless you absolutely have to. If you do dip into it, try to restock the fund as soon as you can afterward.
Increase Your Income
This is one of the hardest tips, but it is perhaps the most important. No amount of budgeting can stretch your income far enough if you are barely making ends meet. You can increase your income by getting promoted at your current job, getting a better one, or side hustling. If you have recently started your job, try working for a promotion. Many low-wage jobs have opportunities for advancement if you work hard enough. However, if you have been at your job for a while and don’t see a promotion in your future, consider looking for another position. Changing jobs can be an easier way to advance your compensation than working toward a promotion.
No matter what you do as your main source of income, a side hustle can help you secure your financial future. Figure out what you love and what people are willing to pay for. The best side hustles those that could be turned into a full-time source of income if you ever lose your full-time job. This, combined with your emergency fund, can give you a financial safety net.