Bigger Pockets: How to Get Rich Without Investing In Real Estate

For most investors, their largest source of wealth will come from their home. And investing in real estate has typically allowed smaller investors to get a jump-start on their wealth-growing adventure.

But right now, real estate markets face their worst affordability levels in 11 years. Soaring mortgage rates are keeping existing homeowners from moving. Why go from borrowing at 3 percent when today’s rate is more than double at 7 percent today?

Fortunately, there are plenty of strategies that investors can use to build wealth in any environment.

First, it’s important to live above your means. That could mean finding ways to cut spending and increase savings.

With today’s interest rates near their highest level in 15 years, savers are no longer being punished. Today’s savers earn 4-5 percent in cash. That’s at a time when inflation is declining. Meanwhile, the stock market averages an 8-10 percent return in exchange for higher risk.

Besides cutting back on spending, earning a higher wage can increase one’s wealth. Finding a higher paying job or second job can add to your earning power.

Once that’s underway, investing matters. Investing in companies with a long-term history of growth and increasing dividend payouts can create an income stream outside of a job.

From there, that income can be used to invest in more speculative parts of the market, such as cryptocurrencies.

To look at the whole picture for building wealth right now, click here.