16 Empowering Ways To Build Wealth
Reading Time: 10 minutes Empowering ways to build wealth – featuring women CEOs. Have you ever found yourself daydreaming about what you would do if you stumbled upon a treasure chest full of gold?
Well, while I haven’t found any hidden chests yet, however, I’ve discovered something just as valuable: 16 practical ways to build wealth.
Don’t worry – this article isn’t about miraculous windfalls or fairy tales. It’s about tried-and-true ways to grow your wealth, in the real world.
Whether you’re a seasoned investor or someone who still thinks a bear market has something to do with forest animals, you’ll find these strategies both enlightening and achievable.
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So, grab a cup of coffee, and let’s dive into the world of wealth-building.
16 Empowering Ways To Build Wealth
1. Diversifying Income Sources
You can not expect to become wealthy and financially free from your employee salary – unless YOU are the owner of the company.
You must develop multiple streams of income, outside traditional employment. This can include passive income sources like dividends, rental income, or ad revenue from website investing, as well as active income like a side business.
We will cover all of these streams of income in this guide.
My investments range from stocks and real estate to owning entire companies. This diversification is a key aspect of financial resilience and growth.
2. Budgeting and Saving
Making more money is step one. Holding on to it, and spending less of it so that you can re-invest it is step two!
“Wealth consists not in having great possessions, but in having few wants.”
– Epictetus
Create a realistic budget and stick to it. Prioritize saving a portion of your income, no matter how small.
Suze Orman, a personal finance expert, started her career as a waitress and built her wealth through disciplined saving and investing. She’s a strong advocate for living within one’s means and the power of saving, demonstrating that smart budgeting is key to financial success.
Warren Buffett, one of the most successful investors in history, is known for his frugal lifestyle despite his immense wealth. He still lives in the same house he bought in 1958 for $31,500 and emphasizes the importance of saving and living within one’s means.
His approach demonstrates how disciplined budgeting and saving can lay a strong foundation for future financial growth.
3. Website Investing
Investing in revenue-generating websites can be a lucrative form of passive income.
Websites that earn through ad revenue, affiliate marketing, and digital product sales require an initial investment, but, since they are already generating income, they can provide a nearly instant ROI.
The key is to identify websites with potential for growth and a solid track record of earnings. Look for sites with quality content, a strong niche market, and a scalable business model.
Take a look at these profitable, established websites for sale.
“Chelsea Clarke, the CEO of HerPaperRoute, is a prime example of successful website investing. Clarke has built a career around buying, growing, and selling profitable online businesses. Her expertise in recognizing the potential in under-monetized websites and transforming them into lucrative assets demonstrates the power of website investing. Through her approach, she has not only generated significant income but also helped educate others on how to effectively invest in and manage online properties for passive income.”
The potential of digital real estate is a major wealth-building strategy in the modern economy.
Learn more about website investing.
4. Investing in the Stock Market
Start investing in stocks early, even if it’s with a small amount. Focus on long-term gains rather than short-term fluctuations.
Geraldine Weiss, a pioneering woman in the field of finance, began investing in the stock market in the 1960s. Despite facing gender biases, she achieved significant success by focusing on dividend-paying stocks, showcasing the importance of long-term investment strategies.
Then there is Ilene Davis, who transitioned from a computer programmer to a stock broker, and exemplifies the power of consistent stock market investing.
By investing about 40% of her income, she amassed a net worth of over $2 million by the age of 50. Her story highlights the importance of starting early and staying committed to your investment plan.
5. Real Estate Investment
Consider investing in real estate, such as rental properties or real estate investment trusts (REITs). Real estate can provide a steady source of income and capital appreciation.
Barbara Corcoran, a real estate mogul and TV personality on “Shark Tank,” was a waitress who started with a $1,000 loan and built a billion-dollar real estate empire.
She had a knack for putting up a wall in living rooms to create “1 bedroom plus den” apartments in what were normally 1 bedroom units. Then she created buzz and excitement when these listings hit the market, selling out with multiple offers.
Her success in real estate investing demonstrates the potential of this market for wealth building.
Mark Ferguson turned his real estate career around by specializing in selling foreclosures for banks. He owns multiple rental properties that generate substantial monthly income and runs a successful real estate investing website.
Ferguson’s journey shows how diversifying within the real estate market can lead to significant wealth accumulation.
6. Start an Online Business
Identify your skills or passions and turn them into a business. It can be anything from online freelancing, to dropshipping, to digital products seller, to becoming a TikTok creator.
Sara Blakely, the founder of Spanx, turned her idea and $5,000 in savings into a global brand. Her journey from selling fax machines to owning a billion-dollar company exemplifies the potential of a side hustle turning into a major success.
But you don’t have to aim to go that big if you don’t want to. For example, I’ve built a small, comfortable business with a team of 4, one that builds wealth and covers all of my expenses without having any of the stress that big-name brands would have.
7. Building an Emergency Fund
Establish an emergency fund with at least 3-6 months’ worth of living expenses. This fund can be a financial lifesaver in unexpected situations like job loss or medical emergencies.
Alexa von Tobel, founder of LearnVest and a New York Times-Best Selling Author, stresses the importance of an emergency fund. Her financial planning company started with the mission to help people achieve financial security, highlighting emergency funds as a crucial step.
8. Paying Off Debt
Focus on paying off high-interest debts as quickly as possible. Consider strategies like the debt snowball or avalanche methods.
Farnoosh Torabi, a personal finance expert and author, has often discussed strategies for debt repayment. Her advice on tackling debt has helped many women regain control of their finances and build a stronger financial foundation.
She was able to achieve financial freedom by aggressively paying down her credit card debts and student loans.
By prioritizing her high-interest debts and using the debt avalanche method, she not only saved on interest but also freed up more money for investments.
9. Automating Finances
Set up automatic transfers for bills, savings, and investments. This ensures timely payments and consistent savings without the need to remember each deadline.
I am a proponent of automating finances to optimize time and money management. By automating my savings and investments, I minimize financial stress and ensure consistent growth of my assets.
Elle Kaplan, CEO and founder of LexION Capital, a wealth management firm, advocates for automating finances to build wealth. Her approach to automating savings and investments has been key in helping her clients, especially women, achieve financial independence.
10. Investing in Education and Skills
Continuously invest in your education and skillset. This could mean formal education, online courses, or self-taught skills, all of which can increase your earning potential.
Ursula Burns, the first African American woman to head a Fortune 500 company, Xerox, is a proponent of continuous learning and skill development.
Her rise from an intern to CEO underscores the value of investing in education and skills.
Jen Sincero’s investment in her writing skills and a business coach led to the creation of the “You Are A Badass” series, turning her life around from couch-surfing broke drifter to becoming a multi-millionaire author.
11. Learn Smart Spending Habits
Adopt a mindful approach to spending. Focus on buying things that add value to your life and avoid unnecessary expenses.
This exemplifies the principle that accumulating wealth isn’t just about how much you earn, but also about how much you save by avoiding extravagant spending.
12. Investing in Stocks of Dividend-Paying Companies
Consider investing in stocks of companies that pay dividends. This can provide a regular income stream and reinvestment opportunities.
Abigail Johnson, CEO of Fidelity Investments, represents a powerful figure in finance who understands the value of dividend investments. Her leadership in a company that manages trillions in assets underscores the strategic importance of dividend-paying stocks as a wealth-building tool.
Many successful investors, like Abigail, have built their wealth significantly through investments in dividend-paying stocks. These stocks provide a dual benefit of potential capital appreciation and a steady stream of income.
13. Seek Professional Financial Advice
Don’t hesitate to consult with a financial advisor, especially when making significant financial decisions or planning for the long term.
Even seasoned investors seek professional advice. Mellody Hobson, Co-CEO of Ariel Investments often discusses the importance of diversifying opinions and seeking expert advice in financial matters.
She advocates for financial literacy and the value of seeking professional advice. Her success in the financial sector underscores the importance of informed decision-making in managing and growing wealth.
14. Staying Informed About Economic Trends
Keep yourself updated with financial news and economic trends. This knowledge can influence your investment decisions and financial strategies.
Successful entrepreneurs and investors, like Mark Cuban, stay informed about economic trends and market dynamics. Cuban’s ability to anticipate market shifts and adapt his investment strategies accordingly has been crucial in his financial success.
Janet Yellen, former Chair of the Federal Reserve and current Secretary of the Treasury, is known for her deep understanding of economic trends and their impact on financial decisions.
Her career is a testament to the value of staying informed and its role in financial success.
15. Networking and Building Relationships
Build a strong network of contacts and nurture relationships in your professional field. Networking can open doors to new opportunities and partnerships.
Indra Nooyi, former CEO of PepsiCo, attributes much of her success to her ability to build and maintain strong professional relationships.
Her journey from growing up in India to leading a global corporation highlights the power of networking in achieving professional and financial success.
Richard Branson’s success with the Virgin Group is partly attributed to his exceptional networking skills. He has continually emphasized the importance of building and maintaining good relationships in business, leading to numerous successful ventures and partnerships.
16. Maximizing Retirement Accounts
Take full advantage of retirement accounts like 401(k)s, IRAs, and Roth IRAs. Maximize your contributions to benefit from compound interest and tax advantages.
Regular contributions to retirement accounts are a common trait among many self-made millionaires.
Jean Chatzky, an acclaimed financial journalist, emphasizes the importance of maximizing retirement savings. As a financial editor of NBC’s “Today Show” and an award-winning personal finance journalist, she advocates for the strategic use of retirement accounts for long-term financial security.
Chris Reining is another example. He retired at 37, heavily utilized his 401(k) and IRA to accumulate wealth.
By consistently maxing out these accounts, Reining was able to build a sizable nest egg that allowed him early retirement.
16 Empowering Ways To Build Wealth – Conclusion
As we close our discussion on the 16 strategies for building wealth, it’s evident that financial growth isn’t just about following a set path—it’s about making smart, practical choices that align with your personal goals.
Each method we’ve explored, from savvy investments to enhancing your skillset, is a building block towards a more secure financial future.
The key is to start somewhere, whether it’s adjusting your budget, exploring the real estate market, or opening a retirement account.
Remember, the goal isn’t just to accumulate wealth, but to create a stable foundation that allows you to live the life you envision.
So, take these strategies, apply them as fit your situation, and watch as your efforts gradually transform your financial landscape.
Here’s to making informed decisions and building a prosperous future on your terms.
