Did you imagine having a specific amount of money by a certain age, only to end up disappointed?
Maybe that dream of saving enough money to retire early became little more than a fantasy, or you hoped to have tens of thousands of dollars in your kids’ college savings accounts by now but have ended up with far less.
It’s easy to get discouraged, but it’s never too late to turn things around and start building wealth. Focus on cutting these habits from your life to build wealth and get closer to your financial goals.
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!)Steal this billionaire wealth-building technique
You don’t have the patience to make saving a steady habit
It’s natural to dream of winning the lotto or receiving a million-dollar inheritance from a relative you never knew you had. But the truth is that wealth isn’t usually something you come into overnight.
Instead, you’ll likely save by working hard for years and setting aside money from each paycheck decade after decade. When you make wise investments and your interest compounds, you can eventually build a savings account big enough to retire on.
But none of that is possible if you don’t have a lot of patience.
Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.
You’re too risk-averse
Being too risky is foolish. But so is not taking enough risk.
To build wealth, you must balance steady, patient savings with a willingness to take a risk now and again. This doesn’t mean buying every lottery ticket in sight. Instead, it might mean meeting with a financial advisor and learning to invest in stocks.
Taking relatively small risks like this can pay off in the long run. Many people have built savings of $1 million or more using this approach.
You don’t have (or stick to) a budget
Creating a budget is one of the best ways to achieve financial goals. With a budget, you figure out exactly how much money is coming in and how much goes out.
Unfortunately, many Americans either don’t set budgets or fail to stick to them over the long haul.
If you’re among the millions of Americans who don’t closely track their spending, it’s time to start budgeting. Sit down with your most recent bank statement, review your purchases, and determine which unnecessary expenses you can eliminate.
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 5.00% 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 stockGet a free stock valued between $5 to $200
You aren’t proactive about saving
If you’re waiting around for money to save itself, you’ll be twiddling your thumbs for a long time.
Wealth doesn’t just happen to you. Instead, you must make conscious choices to build it. That starts with proactively choosing how much to save and how much to spend.
Pro tip: Are you far behind in your savings? Look for a part-time job or start a side hustle so you can earn extra income and catch up on building your nest egg.
You splurge more than you save
“Treat yourself” is a fun mantra, but it can negatively affect your goal of building wealth.
There’s nothing wrong with taking time for occasional self-care throughout the day. But too many happy-go-lucky shopping sprees will likely come back to haunt you, leaving you even more anxious about money.
So look for ways to cut back on fun and frivolous purchases. Know how much is too much.
Do you really end up using the things you buy impulsively while waiting in the grocery checkout line? If you can cut down on at least some of the splurging, you’ll free up cash that you can use to build wealth.
Trending Stories
FOMO has taken over your life and wallet
Maybe you insist that you don’t care much about keeping up with the Joneses. But even if that’s true, most of us still care deeply about keeping up with friends and family.
For instance, if one of your friends makes more money than you and frequently takes expensive trips or buys the best clothes, it’s hard to resist the temptation to spend just so you can fit in and have the same experiences.
Your relationships (hopefully) don’t revolve around such materialistic pursuits. But if you’re having a hard time saying no to a friend or family member who spends more than you can afford, try redirecting to an activity you can all participate in.
You never pay off the full credit card balance
If you buy something with a credit card and don’t pay off the balance quickly, the cost of that item will likely be much higher than the sticker price.
For example, if your credit card has a high interest rate — and most do — you can end up paying much more in interest costs for the purchase.
Credit cards also come with a slew of semi-hidden fees. Some credit card companies charge you a yearly fee just so you can use the card. Many lenders also charge late fees.
You will save a lot of money if you learn to pay the balance in full on time, every time.
You’re too attached to instant gratification
Getting what you want precisely when you want it feels good at that moment. But in the long run, it literally doesn’t pay off.
Money spent now is gone forever, whereas money in the bank or an investment account can earn interest that builds wealth over the years.
You think you’re too young to start saving
No one is too young to start planning for their financial future. In fact, the earlier you start, the better. The more time your investment has to compound, the higher your eventual return on the investment will be.
If you wait to start saving until you’re older, you’ll need to put away much more money per paycheck than you would if you started saving now.
Pro tip: When choosing a savings account, look for accounts with the highest yields. High-yield savings accounts allow your funds to grow much quicker than simple savings or checking accounts.
This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 4.20% APY.4 This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort! SoFi has no account or overdraft fees5 and additional FDIC insurance up to $2 million on deposits is available through a seamless network of participating banks.67 Plus, you can receive your paycheck up to 2 days early.8 How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more. SoFi is a Member, FDIC. 7 Open your SoFi account and set up direct deposit
Earn up to a $300 bonus and grow your money with up to 4.20% APY
Bottom line
Building wealth is much easier when you choose to stop getting in your own way. Start breaking free today and get to work building the wealth you’ve always dreamed of having.
The sooner you turn things around, the faster you can start to get ahead financially.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.