A Few Tips and Tricks for Building Wealth in the Long-Term 

Do you know the difference between rich and wealthy? 

Rich people tend to have extremely high incomes and extravagant spending habits to match. Think luxury sports cars and sprawling mansions. They’re often characterized by the things they buy. 

Wealthy people, on the other hand, are characterized by the money they hold onto. These people might be rich, but they might also have fully funded retirement accounts, real estate investments, and other invaluable assets. 

A lot of Americans want to be rich. But ultimately, wealth is usually a more useful goal. That’s because it’s systematic and sustainable. 

So, if you’re looking to build wealth in the long term (trust us, your retired self will thank you), read on for some of our top tips. 

Maximize Your Income 

You can’t be building wealth without money coming in, so let’s start there! 

There are lots of ways to maximize your income, and the right method will depend on your unique goals, skills, and situation. 

You might consider:  

• Asking for a raise. When was the last time your employer offered a pay bump?  
• Getting a new job. If your current employer can’t increase your income, it might be time to look for something new. 
• Getting a second job or starting a side hustle. This extra income can go a long way in reaching your financial goals. 
• Getting a degree, certificate, or other credentials. More education could open new doors. Just be sure to do a thorough cost-benefit analysis, or this route could actually end up costing you. 

Whatever you decide, earning more money is always a worthwhile goal. 

Build a Budget 

To grow your wealth, you’ll need to know just how much is coming in [ITALICS:] and just how much is going out. That’s where your budget comes into play. 

Budget: An estimation of income and expenses. Think of it as a plan for your money, guiding your spending on rent, debts, emergency expenses, food, transportation, and more. 

To build an initial budget, follow the steps below:  

1. Add up your monthly income (wages, tips, etc.). 
2. Determine your monthly expenses (rent, loan payments, groceries, childcare, etc.) 
3. Review your spending for a couple of months, adding anything you hadn’t accounted for to the lists above. 
4. Cut any unnecessary expenses. Maybe that old subscription you had totally forgotten about? 
5. Pay down debt. Student loans, car loans, credit cards… Whatever the case may be, debt is often a drain on your wealth. Earmark some of your monthly income (ideally more than the minimum payment amount) for any outstanding debts. 
6. Prioritize savings. You should try to designate ~20% of your income to savings each month. Ideally, you could live off of your savings for a few months in an emergency situation. 
7. Invest your money. This is a tried-and-true way to grow your funds over time. Few, if any, wealthy people have gotten where they are without a stellar investment or two. 
8. Make a plan for any income left over at the end of the month. This might include paying down debt faster or building your savings even further. 
9. Review your budget on a monthly basis. Where did you save? Where did you overspend? How are your goals progressing? 
10. Profit!  

Of course, this is just a start. Your budget can be as simple or complex as you’d like. Just make sure you have a system that works for [ITALICS:] you to continue building wealth. 

Wait, Watch, and Adjust 

Once you’ve built a budget, time will become your friend. Consistently work to increase your income, build your savings, pay down debt, and grow your investments. Check in often on your financials, adjusting whenever necessary. 

Remember: Most of us aren’t going to win the lottery. Building wealth is usually slow-going, especially in the beginning.  

Protect Your Wealth 

Money can be hard to make and easy to lose. Once you’ve built up wealth, you’ll need to put some protective measures in place. 

To begin protecting your wealth, consider the following:  

• Monitor your accounts and credit score for any usual activity. Take note of any data breaches that could compromise your information. 
• Diversify your investments—maybe take some of your cash savings and buy a rental property. This way, you don’t have all your eggs in one basket. 
• Consider springing for insurance. Life insurance, disability insurance, and liability insurance could help protect your assets in an emergency. 
• Speak with a professional about estate planning. While it’s a bit macabre, there are infinite ways to pass your wealth on. You should have a say. 

Final Thoughts: Building Wealth in the Long-Term 

Building wealth is generally a marathon, not a sprint. But making it to the finish line is possible, regardless of where you’re at today. 

By growing your income, building a budget, adjusting as needed, minimizing tax impact, and employing some protective measures, wealth very well could be within reach. And don’t worry. We’ll be here to help you every step of the way!