Looking to get rich next year? Unfortunately for you, nobody becomes rich overnight.
Those “overnight successes” you see are normally the results of years and years of hard and deliberate work. The good news is that when it comes to building wealth there are no secrets.
The same set of principles will work for absolutely everyone! If you’re willing to put in the work and make the sacrifices you can build wealth at a fast pace.
Don't believe me? Well, I've done it and so have countless other people. You just have to start now and build on what you've achieved.
Here are five personal finance habits that will make you rich.
# 1- Spend Significantly Less than You Earn
The first habit is to spend less than you earn. And if you want to build wealth fast you need to spend significantly less than you earn.
You would think that this would be a common sense rule but unfortunately, it’s not. Most Americans spend a lot more than they earn which is why there’s so much consumer debt. If you can ingrain this one habit at a young age you’ll be on the track to financial freedom.
If you don't know where to start, check out our list of 15 Ways To Save $500 Per Month and How I Save 75% Of My Monthly Income.
# 2 – Invest Your Money at a Young Age
The earlier you start investing the more time your money has to grow. This is why investing at a young age is so crucial.
Even if you only have an extra $20 per week to invest you need to do it. Those small amounts can turn into something huge in twenty to thirty years. (Not sure how to invest? Check out our guide on how to get started investing).
Don't know where to start? Open an account at one of our top free investing apps.
# 3 – Avoid Debt
Debt should be your enemy. Those of you with mountains of student loans have probably already figured this out. (If you have student debt, I recommend using Credible to see if you can lower the APR on your student loans by refinancing. Getting a free savings estimate from them takes 30 seconds here.)
Debt will hold you back from so many financial opportunities. Make it your mission to avoid all forms of consumer debt. If you’re already in debt you need to first work on getting rid of it before you’ll be able to build wealth.
# 4 – Save as Much Money as You Can
Saving for the sake of saving is pretty pointless. Instead, you should create financial goals like saving for a house, car, or early retirement.
Once you’ve come up with meaningful goals start stashing away as much money as you can. Save for your current goals and for your future.
Check out these great deals on high yield savings accounts: Best High Yield Savings Accounts.
# 5 – Find a Career You Enjoy
Last but not least you need to find a career you enjoy. You’re not going to be able to realize your full earning capabilities unless you at least mildly enjoy what you’re doing.
Plus, who wants to work their entire life doing something that they hate? It might take you a while to find that perfect fit but you’ll know when you find it.
Don't know what to put your passion into? Well, get a job and start a side hustle. Many millennials work a side gig starting in college and continue to grow it after graduation.
Practice Makes Perfect
If one of your goals this year is to build wealth then these five personal finance habits will get you there. At the end of the day, the steps to take are very simple, it’s acting them out that will be a test of character.
What else would you add to the list?
Editor: Robert Farrington Reviewed by: Chris Muller
Alexa Mason is a personal finance writer, blogger, and entrepreneur based in Ohio who has been sharing her financial journey online for over a decade. She is the founder of SingleMomsIncome.com, a popular blog that chronicles her experience as a single mother building financial stability from scratch — one side hustle, budget win, and debt payoff milestone at a time.
Alexa writes from lived experience. When she became a single mom to two young daughters, she faced the same financial pressures that millions of Americans deal with every day: tight budgets, unpredictable income, the need to earn more without sacrificing time with her kids, and the challenge of planning for the future when you are barely making ends meet in the present. That firsthand perspective is what makes her writing resonate with readers who are in the thick of it.
At The College Investor, Alexa covers topics like frugal living, earning extra income strategies, debt payoff plans, and how to pay for college as an adult returning to school. Her articles are practical, encouraging, and rooted in the kind of advice you would get from a trusted friend rather than a finance textbook. She understands that building wealth is rarely a straight line — and she writes for readers who know that too.