It’s never too late—or too early—to take control of your financial future. Whether you’re living paycheck to paycheck or looking to level up your financial game, building wealth is possible, no matter your income. In this blog, we’ll break down key strategies for saving, investing, and building long-term wealth with practical, real-world advice.
1. Plan for Emergencies and Life Risks
One of the first steps in building wealth is preparing for the unexpected. Life happens—whether it’s a medical emergency, car repair, or job loss. Having an emergency fund helps you stay afloat when life throws you a curveball. The key is setting aside enough money to cover at least 3-6 months of expenses.
2. The 60/20/20 Budgeting Rule
The 60/20/20 rule is a simple yet effective budgeting strategy:
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60% for essentials (housing, food, utilities)
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20% for savings and investments
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20% for discretionary spending (entertainment, dining out, etc.)
This rule helps balance your finances while ensuring you prioritize saving and investing, even when money feels tight.
3. Pay Yourself First
One of the smartest money moves you can make is to pay yourself first—like it’s a bill. Set aside a portion of your income for savings and investments before anything else. By treating your savings as a non-negotiable expense, you can steadily build wealth, even on a modest income.
4. The Importance of Long-Term Investing
Investing is a key component of building wealth. The focus should be on long-term investing, rather than chasing short-term gains. Staying consistent with your investments, even when the market fluctuates, can help you grow your wealth over time. After all, the earlier you start, the more time your money has to grow.
5. What to Do (and NOT Do) When the Stock Market Drops
The stock market can be unpredictable, but reacting impulsively during market drops can hurt your long-term wealth. Instead of panicking, stick to your investment strategy, diversify your portfolio, and avoid making emotional decisions. Remember, wealth building is a marathon, not a sprint.
6. Diversify Your Portfolio
A key to successful investing is diversification. Don’t put all your eggs in one basket. Spread your investments across different asset classes—stocks, bonds, real estate, and more—to reduce risk and maximize growth.
7. Real Estate: A Strong Investment Option
Real estate is a powerful wealth-building tool. Whether it’s owning your home or investing in rental properties, real estate offers long-term value and potential passive income. It can provide stability, appreciation, and tax benefits that contribute to wealth over time.
8. Budgeting Tips That Actually Work
Budgeting doesn’t have to be complicated. Start simple: track your income and expenses, prioritize savings, and cut back on non-essential spending. It’s all about finding a system that works for you and helps you stay on track toward your financial goals.
9. Retirement Account Strategies You Can Start Now
It’s never too early to start saving for retirement. Contribute to different retirement accounts like 401(k)s or IRAs as soon as possible. Even small contributions now can grow significantly over time with compound interest.
10. Short-Term Sacrifice for Long-Term Success
Building wealth often requires short-term sacrifices. This might mean cutting back on luxuries now to set yourself up for a more secure financial future. These sacrifices—whether it’s reducing debt, saving more aggressively, or making smart investments—pay off in the long run.
Want to learn more? Watch our full YouTube video, where Cameron MacDiarmid, a financial expert, Texas A&M Aggie and Marine Corps veteran, shares his insights on building wealth regardless of your income level. Cameron breaks down practical strategies for saving, investing, and preparing for your financial future—no matter where you’re starting from.
The Schrader Group is one of the Top Real Estate teams when buying or selling a home in San Antonio and the surrounding areas. With over 43 years experience, we can handle every need you may come across. From selling your home, buying your home or purchasing a new build, let us be your guide. Contact us today!