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7 Most Popular Ways Americans are Trying to Build Wealth

Check out these options if you need some ideas on how to earn money and build your investments.

By Jenny Cohen

Edited by Ellen Cannon

Updated Nov. 22, 2024

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You may have decided that one of your goals this year is to supplement your income. But how can you do that?

The good news is that you have some options that can help you make extra money or boost your bank account.

So, how are you going to build wealth? Here are some of the most popular ways Americans are trying to increase their finances.

Steal this billionaire wealth-building technique

The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.

A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.

If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)

Invest in the stock market

The stock market can be a volatile place to invest your money, yet it remains a popular way for many Americans to build wealth.

Compared with safer options like CDs or a side hustle, investing in the stock market can be rewarding if you pick the right stocks. You can also put money into mutual funds that may not fluctuate as much as an individual company's stock.

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Put money into savings

One of the easiest and most direct ways many Americans are choosing to build wealth is by putting money into their savings accounts.

A popular way to do this is to set aside a certain amount in your budget every month or week and automate your deposit into a high-yield savings account. That way, you'll be building wealth without even thinking about it.

Invest in real estate

While housing prices are still volatile nationwide, investing in real estate remains a popular wealth-building choice for many Americans.

There could be different potential money-making opportunities, such as rental properties for residential use, or you could work with commercial real estate.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.25% (as of 11/15/24) APY²on your uninvested cash³and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

Invest in bonds or CDs

Bonds and certificates of deposit, or CDs, may be good options if you want a low-risk investment that may not expose you too much to the whims of the stock market. This option could be particularly attractive if you’re concerned about a recession.

Check with local banks, financial institutions, or online offers to see what options you may have. The rate of interest paid on a CD varies with the term. For example, a six-month CD will probably pay less than a five-year CD.

Before you invest, consider how liquid you want your assets to be. If you may need access to your money due to a job loss or other emergency, a CD or bond may not be a good choice.

A CD has a penalty if you withdraw the money before the end of the term. Choose a savings or money market account for easy access to your money.

Get a second job or side hustle

If starting a new full-time business seems a little daunting, you may want to consider a side hustle and try out your plan before you jump into it as a full-time business.

A side hustle can be easy to establish if you have free time on nights and weekends so it doesn’t interfere with your regular job. It can also help you make some extra cash to save for an emergency fund, debt repayment, or retirement investments.

Start your own business

There has been an increase in monthly business applications in recent years, so you wouldn’t be alone if you decided to start your own business as a way to build your wealth.

But be sure you consider the costs and potential revenue you can earn before you jump in. Creating a thorough business plan may be key to making your business a success.

Grow Your $$: 11 brilliant ways to build wealth after 40

Negotiate a higher salary

Don’t want to leave your job? Then it may be time for you to negotiate a higher salary.

Remember to do some research before you go in so you know what the market rate is for your position. And be ready to get a new job elsewhere if you can’t get what you’re worth.

Bottom line

Are you ready to build your wealth? If you think investing in the stock market is the way to go, be sure you take time to research a brokerage and companies you may want to invest in.

Choosing any of the other popular ways Americans try to build wealth will also require research and hard work. But if your goal is to become wealthy, you may have to rely on more than one option from this list.

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