No matter how they define it, many Americans want to consider themselves wealthy.
Over half — 57% — of Americans believe they’ll be wealthier than their parents, according to a recent LendingTree survey of 2,000 U.S. adults. But more than 20% aren’t currently utilizing common strategies to build wealth, the financial services company found.
Here are the five most popular wealth-building strategies Americans currently use, according to LendingTree:
Those aiming to grow their own wealth may use a combination of strategies throughout their lives. And that’s OK: There’s “not one [wealth-building] methodology that works better than the other,” Adrienne Davis, a certified financial planner with Zenith Wealth Partners, tells CNBC Make It. “There’s no one size fits all.”
Davis says she generally tells her clients to start contributing to retirement savings “as early as possible.” That’s because even if you can’t contribute a high percentage of your income, more time in the market gives you a longer time horizon for your money to grow through compound interest, in which you earn returns on your returns, not just your initial investment.
