You want a lot out of life, and money is just one of those things — and not necessarily among the most prominent. But let’s face it: Without money, you’ll have a hard time achieving many of your other goals and protecting many of your other priorities. Like it or not, money matters.
And that means that the ways in which you build your income and wealth matter, too. If you’re going to accumulate your nest egg, care for your loved ones, pay off or refinance your mortgage, and retire comfortably, then you’re going to need a two-pronged strategy for getting rich slowly. Here’s how to increase your income and how to use that income to grow wealth.
How to build your income and earning power
A great income and a successful career are not, on their own, enough to make you rich. But without those things, you’ll never have access to many of the important long-term wealth strategies we’ll discuss. So let’s talk about your income and your career.
If you want to build up your earning power, then you’ll need to become qualified for the jobs that you want, not just the jobs that you have. So go above and beyond at work, take on extra responsibilities, and learn new skills.
You can also learn important skills by going back to school, experts who run a college, point out. A college degree (or, if you already have one, a higher-level degree) can make a massive difference in how you are viewed by higher-ups in your company and by future hiring managers.
How to build your interest, assets, and wealth
So if you build a successful career and make a lot more money than you’re making now, then you’ll be all right, right?
Actually, no. One of the trickiest things about growing wealth is realizing just how little of it has to do with your initial income.
To be clear, your income matters: If you’re not making more money than you spend and saving the difference, than you’re not going to have any money to use in the strategies we’re suggesting for you. But the wealthy also recognize the power of compound interest and know that their real wealth will come from the money that their money makes for them. To grow rich, you need investments and assets.
Investments will give you a higher rate of return than the interest you’d get in a savings account. That’s crucial for beating inflation, so start saving for retirement as soon as you can and use a reliable long-term strategy within a tax-advantaged retirement account such as a 401(k).
Of course, investments can also be used to build an income and generate wealth more aggressively. If you can stomach the risk, you can reap big rewards. To make more on the stock market, you’ll need to take riskier positions and, in many cases, make more trades. Be sure to read up on options such as momentum trading strategies. Going with your “gut” is just gambling, and won’t end well for you. But if you trade smart, you may find that aggressive investing can be a part of your income- and wealth-building strategy.
Assets, too, can help you create wealth. Choosing to buy a home and pay a mortgage instead of rent, for instance, is a great way to put yourself in a better long-term position. Be careful, be smart, and remember to build your wealth as well as your income. They’re not the same thing, and you’ll need to take care of both if you want to succeed.