The rich may seem to have financial magic or luck that ordinary people don’t. However, many of the fundraising strategies they use to achieve their financial goals aren’t all that complicated.
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While the wealthy may have more money to work with than you, building wealth is something that anyone can learn and succeed because of the power of compound interest and other investment strategies. Whether it’s increasing your income or finding the right high-yield savings account, 2025 could be the year you finally grow your money. Read on to explore seven steps to start building wealth like a millionaire.
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Investing wisely and diversifying your portfolios was the hallmark of wealth building trends in the past year, according to Khwan Hathai, CFP and certified financial therapist at Epiphany Financial Therapy. “This approach, rooted in the principle of not putting all the eggs in one basket, involves spreading the money across different asset classes to reduce risk and take advantage of growth opportunities.”
For someone looking to follow this, Hathai suggested starting to invest in a mix of financial products like stocks, bonds, real estate or explore new areas like cryptocurrencies or ESG (environmental, social and governance) investing, depending on the individual’s tolerance and financial goals.
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Focusing on long-term growth over short-term gains has always been a distinguishing feature of wealthy investors as well, Hathai said. “[The rich] look beyond the volatility of the markets, focus on the assets and businesses that guarantee continued growth.
He encouraged a patient and specific way of investing, where the emphasis is on the belief of interest in years or decades, rather than quick wins.
Using tax-deferred accounts is another strategy that has been successfully used by the wealthy to improve their financial status, Hathai said. “By increasing contributions to retirement accounts such as IRAs and 401(k)s, individuals can significantly reduce their tax bill while encouraging the growth of their investments in a tax-advantaged manner.”
Embracing this strategy requires an understanding of the various accounts available and their benefits, matching individual contributions to their larger financial plan.