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:
Owning a home: 36%Saving for retirement: 33%Putting money in an online savings account: 29%Investing in the stock market: 24%Working with a financial advisor: 17%
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.”
How to start building wealth
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.
Contributing to an employer-sponsored 401(k) can be an easy way to get started. You generally contribute pre-tax income, which means you don’t owe taxes until you withdraw the money in retirement. Contributions also lower your taxable income for the year you invest.
For 2025, individuals under age 50 can contribute up to $23,500 to a 401(k), and those ages 50 and up can put in an additional $7,500.
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While many companies will offer a match on contributions you make to an employer-sponsored 401(k) or other plan, it’s worth contributing even if yours doesn’t, Davis says. You can still benefit from compound interest and tax advantages, she says.
And even if you aren’t able to contribute much at first, it’s beneficial to get in the habit of regularly putting money toward savings and investments, money expert and self-made millionaire Ramit Sethi previously told CNBC Make It.
“If you are in your 20s, you have an amazing opportunity, even if your earnings are not that high, to set up your habits right,” he said. “As your earnings increase in your 30s and 40s, you can just turn that number up.”
Cover your bases first
While it’s great to start investing for the future, Davis also recommends covering your financial bases first. That includes building an emergency fund and paying down high-interest debt.
To grow your rainy day fund, Davis encourages clients to start by opening a high-yield savings account and setting up automatic contributions from their paychecks. Experts generally recommend aiming to save three to six months’ worth of expenses in case you lose your job or face an unexpected injury or car repair.
You should still contribute to your retirement savings while building your emergency fund, Davis says. Putting off saving for retirement altogether would mean missing out on that valuable compound interest.
You might not be able to maximize your retirement contributions during this time, but Davis recommends those who receive an employer match on 401(k) contributions still put in enough to earn the full match.
And if you have debt, don’t neglect it in favor of building your savings. “The interest payments could potentially be crippling,” Davis says.
It may also be beneficial to work with a CFP or other financial advisor who can help you find the right wealth-building strategy for your unique financial situation. “The pros of working with a financial advisor are that you have an expert who is in your corner, able to provide you guidance and recommendations on your financial plan,” Davis says.
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