While we’d like to think we have all the answers, the truth is, that we all need a little help when it comes to managing our big bad finances. So, we’ve compiled a list of five expert tips to manage your bread in the year ahead.
How to save money
1. Zero in on your FICO score
Everyone’s got to start somewhere. We suggest taking a closer look at your debts owed. This is a sentiment Teri Williams, president and CEO of OneUnited Bank and author of “I Got Bank: What My Granddad Taught Me About Money”, appears to share.
“FICO is the most widely used credit score, which is a number that represents your creditworthiness or likelihood to pay back a loan,” Williams once told Essence. “It is a calculated compilation of past due debts you owe, frequency of past due debts, type of debt, bankruptcy and other information.”
Of all the information included in your FICO score, Williams stated that the frequency of payments has the biggest influence on your rating.
You May Also Like
RELATED: 5 Ways To Get Financially Fit
2. Find a partner
“Often, reaching your goals requires enlisting the help of a friend so you remain accountable.” Tiffany Aliche, better known as “The Budgetnista”, who developed the Live Richer Challenge to help women accomplish just that in 2015, once told U.S. News.
“Work toward specific financial goals with an accountability partner,” she says. “… Money management is a team sport.”
3. Take action
“This economic recession has really hurt many of our credit scores. We are not alone. It’s important that we not be so ashamed that we don’t take action. Everyone can rebuild credit. By following some simple steps over time, it’s very doable,” the co-founder of My Fab Finance recently told Essence.
You May Also Like
Those steps include setting (and sticking to) a budget, transferring “credit card balances to an introductory offer with no interest for a year or two,” or for those already with excellent credit, asking for a higher credit card limit – in turn, “lowering your credit card utilization rate, which is a contributing factor to your credit score.”
4. Let spring cleaning boost your budget
If you’re anything like us, the new year is accompanied by rummaging through old items. Instead of tossing them, repurpose them, sell them online, have a garage sale, or trade gently worn clothes for cash or store credit towards thrifted goods at various stores like Buffalo Exchange, Rag-O-Rama, or Plato’s Closet – among others.
“Go online and get to listing some of your unwanted stuff that you think someone will buy and watch your trash magically turn into cold, hard cash,” Patrice C. Washington, author of “Real Money Answers for Every Woman”, told UpScale Magazine.
“Use websites like ebay.com, craigslist.com and etsy.com. But don’t be lazy. Your chances of making quick sales greatly increase when you put a little thought and time into creating your listings. Start out with catchy and descriptive headlines to get a prospective buyer’s attention. Do your research and write an in-depth description of what you’re selling,” she added.
RELATED: Top 10 Money-Saving Tips For Your Spring Break Vacation
5. Invest in your future
Sharon Epperson, CNBC senior personal finance correspondent, suggests stashing as much money as possible in Roth retirement accounts. “You could be in a higher or lower tax bracket when you’re in your 60s, who knows? With a Roth IRA or a Roth 401(k), after age 59 ½, you’ll generally be able to withdraw your money tax-free,” Epperson told U.S. News.
FAQ: Building Wealth
1. What does “building wealth” actually mean?
Building wealth means steadily growing your financial resources over time—through saving, investing, and creating income streams—so you can secure your future, have financial freedom, and pass on assets if you choose.
2. Do I need a high income to build wealth?
Not necessarily. A high income helps, but wealth comes from what you keep and grow, not just what you earn. Many people with modest incomes build wealth by living below their means, investing consistently, and avoiding debt traps.
3. What’s the first step to building wealth?
Get control of your money. That means:
-
Tracking your spending.
-
Paying off high-interest debt (like credit cards).
-
Building an emergency fund.
Only then can you start investing and compounding your money effectively.
4. How important is investing?
Essential. Saving alone won’t beat inflation. Investing allows your money to work for you, generating returns through stocks, real estate, businesses, or other assets. The earlier you start, the more compound growth works in your favor.
5. Should I pay off debt or invest first?
It depends on the debt. If it’s high-interest (e.g., 15–20% credit card debt), pay that off first because no investment reliably beats that return. If it’s lower-interest (like a mortgage or student loan), you can often invest while paying it down.
6. What are the biggest wealth-building mistakes to avoid?
-
Living paycheck to paycheck without a plan.
-
Trying to “get rich quick.”
-
Not investing early enough.
-
Failing to protect wealth with insurance, wills, and diversification.
7. How long does it take to build wealth?
It’s not overnight. Most real wealth is built over decades through consistent saving, investing, and smart financial decisions. Patience and discipline are your edge.
8. Do I need multiple income streams?
One income stream can work, but multiple streams speed things up and provide security. Common examples: a side business, rental property, dividends, freelance work, or royalties.
9. What role does mindset play?
A big one. Discipline, long-term thinking, and resisting lifestyle creep matter as much as financial knowledge. Many wealthy people focus on ownership (assets) rather than consumption (spending).
10. When should I talk to a financial advisor?
When your situation gets complex (large investments, estate planning, tax optimization), or if you don’t feel confident building a plan alone. Just make sure the advisor is fiduciary—legally required to put your interests first.
