Wall Street isn’t the only place to grow your money. While the stock market dominates financial discussions, there are plenty of lesser-known strategies for building wealth that don’t rely on insider knowledge.
By exploring these seven secrets, you can outsmart Wall Street and take control of your financial future.
1. Maximize high-interest savings accounts
Traditional savings accounts offer low returns, but high-interest accounts can significantly boost your savings. Online banks and credit unions often offer competitive rates, with some accounts offering annual returns of more than 4%.
Shop for an account with no monthly fees and the highest possible price. Automate your deposits to grow your savings effortlessly.
Pro Tip: Earn as much of your emergency savings as possible. For example, SoFi Checking offers 4% interest, plus a potential sign-up bonus of $300. (May change without notice.)
2. Benefit from tax-advantaged accounts
Take full advantage of accounts like 401(k)s, IRAs, and HSAs. These tax-advantaged options allow your money to grow faster by reducing your tax burden.
For example, employer matching contributions to a 401(k) are essentially free money. Likewise, an HSA paired with a high-deductible health plan offers triple tax benefits: tax-deductible contributions, growth, and withdrawals for medical expenses.
Pro Tip: If you have a high-deductible health plan, you should have a health savings account. Check your vital HSAs.
3. Investing in real estate crowdfunding
Real estate is a reliable way to build wealth, but purchasing property outright can be expensive. Crowdfunding platforms like Fundrise allow you to invest in real estate for as little as $10, making it accessible to almost anyone.
These platforms pool money from multiple investors to purchase properties, providing steady returns through rental income or property value appreciation. Diversifying your investment portfolio is a simple way without having to tie up a lot of capital.
Pro Tip: One modern way to diversify is through real estate and venture capital. Companies like Fundrise offer investments as small as $10.
4. Use cash back apps and rewards
Maximize every dollar you spend with cash back apps and credit cards through rewards programs. Apps like Rakuten and Ibotta offer discounts on everyday purchases, while top-rated cash back credit cards offer rewards based on a percentage of spending.
Combine these tools to earn cash back on everything from groceries to travel, and reinvest the rewards into your savings or investments.
Pro Tip: When you spend on anything, always pay with your highest rated cash back card.
5. Reduce unnecessary fees
Fees can quietly erode your savings over time. From bank account fees to investment management fees, these small costs add up.
Switch to free banking and explore low-cost index funds or robo-advisors for your investments. Lower fees allow more of your money to grow.
Pro Tip: If you have more than $150,000 in savings, consider talking to a professional financial advisor. Zoe Financial is a free service that will match you with a professional in your area.
6. Create multiple sources of income
Relying on one source of income limits your financial growth. Side hustles like freelancing, renting out properties, or starting an online store can supplement your primary income.
Multiple sources of income provide stability and accelerate the saving process, giving you a financial advantage. Choose the activity that matches your skills or interests for best results.
Pro Tip: If you’re looking for part-time jobs or work from home, FlexJobs lets you browse and apply to verified jobs near you and around the world.
7. Focus on compound growth
Time is one of your greatest allies when it comes to building wealth. Start investing as early as possible to maximize compound growth, as your profits generate additional returns over time.
Even modest monthly contributions to an index fund or savings account can grow significantly given enough time. Be consistent and watch your money multiply.
Take control of your savings
Growing your savings doesn’t require insider knowledge or Wall Street tricks. By utilizing these practical strategies, you can take control of your money and watch your wealth grow steadily over time.
Start small, make wise choices, and stay consistent. Beat Wall Street by focusing on the tools and strategies that work for you, and enjoy the financial freedom that comes with it.