Inflation fell just below 3% (2.9%) for the first time since 2021, which makes it the perfect time to look at your financial matters with a fresh perspective. But how can you take advantage of the current economic climate? “The top ways to grow your wealth are really simple, almost deceptively so,” self-made millionaire and author of “I Will Teach You to Be Rich” Ramit Sethi tells CNBC. “And they seem boring, but they are the ones that actually work.” So what should you do? Here’s how to save money and grow wealth, according to financial experts.
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1. Invest Your Money
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Consider investing even a small amount of money to grow wealth. “Invest a percentage of your income every year automatically and increase that percentage 1%,” Sethi says. “We often believe that rich people have access to secret investments, and that’s how they make a ton of money. Listen, I have access to those investments, and I can tell you right now, they typically do not perform better than a simple S&P index fund. The ordinary truth is that you can get great returns with a simple low-cost long-term index fund.”
2. Make More Money
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Don’t feel limited by the amount of money you make. "An often-overlooked option to save more money is to make more,” Kevin M. Curley, II, CFP, wealth advisor at Global Wealth Advisors, tells CBS News. “Working to improve or build up a skillset can increase an employee's value and the amount of money someone might be willing to pay them. Market any specialized skills on social media platforms by broadcasting them to anyone who will listen. You don't have to be an influencer to make money on YouTube, for example. It is possible to reach people who are interested in very niche areas and start making money with only 1,000 subscribers.”
2. Plan Ahead
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Plan ahead when doing food shopping or planning to go to a restaurant so you don’t get tempted by something outside your budget. "Be honest with yourself and set expectations with friends and family who might be expecting you to pick up the tab or purchase a gift,” Dr. Kate Mielitz, Accredited Financial Counselor at Beyond Finance, tells CBS News. “Yes, it's hard, and uncomfortable, to say, 'I can't afford it,' but it pays off when you have money in your account at the end of the pay period.”
4. Switch Service Providers
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Consider switching service providers to save money. "As a personal example, I recently switched telecom services and found it was 30% cheaper, and the plan gave me free cell service for the first year," Curley says. “Shopping around for home and auto insurance rates can be a good way to save money,” says Nia Adams, personal finance educator at Perspectives.
5. Is Your Salary Fair?
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Don’t be afraid to ask for a raise to make sure you are getting a fair wage. “Learn the skills of negotiating your salary and getting paid what you’re worth,” Sethi says.
6. Side Hustle
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Consider making more money by exploring side hustles. By using your spare time to work on new projects, you can make more money. “If you really want to increase your earnings, consider starting a business on the side,” Sethi says.
7. Reduce Investment-Related Fees
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Don’t overlook the fees on your investment accounts. "Fees are imperative to consider when choosing an investment because they can diminish your investment returns, and with compound interest, can cost you a substantial amount of money over time," Vincent Grosso, founder at Pascack Capital, tells CBS News. "To save money, investors can look for less expensive fund options. A more expensive fund does not always equate to a superior fund. Evaluating your fund fees can save you money today, and your future self will thank you, as well.”
