“Wealth is a measure of net worth, and in order to have some wealth, a person needs to have more savings and assets than debt and expenses,â€ says Barany. “Saving as a pattern of behavior can support the opportunity to build wealth. Without saving, it is very difficult to build wealth.â€
“Open an online savings account,â€ Barany advises. “This will help put distance between you and your money. Use Bankrate.com to find the best savings account, then automate the transfers.â€ Barany also urges young adults to develop relationships with their local banking community and recommends using direct deposit. “Utilizing direct deposit to save automatically is the best strategy available to anyone,â€ he says. “If direct deposit is not available, make a deposit the first week of every month.â€
Take a second look.
“Look up local thrift and secondhand stores in your area. Keep in mind, the better the neighborhood, the better stuff you’ll find. You’ll save hundreds of dollars a year by letting someone else buy new stuff that you can get for pennies on the dollar later,â€ says Aliche.
“Cash will allow you to negotiate prices and help keep you from overspending. You’ll save on finance fees that can double or triple the cost of an item.â€
Do it yourself.
“I love YouTube because if you want to learn how to do anything, it offers a comprehensive video. I’ve learned how to paint, lay tile, program my phone, and I even take yoga classes every morning via YouTube.â€