5 Realistic Steps to Increasing Your Wealth in 2013

Written by Sam on . Posted in Personal Finance, Retirement. 17501 views.

How to increase your wealth in 2013Wealth is not about making money, it’s about saving money.  Good habits are what separate a wealthy individual from a bankrupt one (and independence from dependence) .  In the consumer-based society we live in it’s easy to judge one’s wealth based upon the toys they have in their garage, the size of their house or the exclusivity of their country club membership. 

The reality is that those “rich people” who are leveraged out the wazoo are no more wealthy (nor happy) than those living paycheck to paycheck.  Here are some realistic first steps to increasing your wealth in 2013:

  1. Make your nuts smaller.  Pardon me?  Thanks right, you need to decrease your fixed costs for 2013.  Write down exactly how much you’re spending per month on fix payments such as mortgage, car, utilities, school debt, etc.  Chances are at least one of those items will be paid off this year.  Instead of getting a new car as soon as your old one is paid off, keep driving payment free for a year or two.  Instead of getting a bigger house when you payoff your school loan, direct those payments to savings.  Look back on 2013 as the year that your payments decreased and your savings increased.
  2. Let your material possessions go…  If you’re like most Americans you have way too much crap in your house.  By crap I mean material possessions which you’re not using, which are taking up space, and which you probably purchased as an impulse rather than a real need.  Start the new year differently this year by making a list of what you can get rid of – not what you want to accumulate.  Shrinking your basis of material possessions will free up both your mind and your wallet.  Living a substance based life is one of the 18 Financial Tips I Wish Someone Told Me When I Was 18.
  3. Reverse your buying cycle.  Most of us run up our credit card to then pay it off when we get the money.  Start the new year by reversing this cycle.  Try delaying your spending by one pay cycle so that instead of putting your purchases on credit, you put them on your debit card.  By spending the money you already have, you’ll force yourself to think twice about impulse buys.
  4. Setup auto-savings.    An easy trick to increasing your wealth this year is to save money before it hits your checking account.  Some examples include increasing your retirement contribution and setting up auto-transfers to your savings account.  While this will decrease your spendable paycheck, it will cause you to adjust your spending to account for a specific savings level.  I have setup my 401(k), company stock purchase and kid’s retirement to be auto0withdrawn from my pa
  5. Borrow the jacket, don’t buy it.  Thinking about going on a snowboarding trip this year or looking to fix-up your house?  Instead of buying that $300 ski jacket or $250 hedger that you’re going to use just once or twice, borrow it from someone.  In staying consistent with shrinking your accumulation of material possessions, avoid purchasing items that you could easily borrow.  After all, what are friends for?

Looking for more inspiration in 2013?  Our good friends at MarcAndAngel.com have released an exciting new eBook covering topics ranging from self-help to personal finance – check it out if you’re looking to have a productive and prosperous 2013.


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Comments (3)

  • Doyle Wright


    Great article Sam, I like the way you think. I am working on a program that uses software to give you a Financial GPS to guide you to becoming Debt Free in 1/3 of the time as conventional methods. The savings in interest alone can be tens to hundreds of thousands of dollars. Imagine paying off a car loan and a 30 year Mortgage in as little as 6-10 years.


  • Tonie S


    I have a question. I am a 41 year Single mother of 2 and for the last 18 years I have worked my buns off trying to eliminate all debt! Well, about two years ago I became DEBT FREE! House cars, credit card, Student Loan EVERYTHING! It took some long hours and some shorter vacations to do it but I did.
    My problem is, since I am now DEBT FREE my Credit Score is LOW! I talked to a friend and they told me that having No debt is like Not having any Credit History AT ALL! I think this is Crazy….I did without alot to get to this point in my life and think this is so unfair. What should I do to raise my credit rating? Buy a new car???? 🙁 I don’t want a new one. My son & I have great automobiles and I like being debt free. I do have a couple credit cards that I decided that I would use but they have less than a $100 balance on them. Need some advice….please


    • Sam


      Tonie – Thank you for the comment. The best way to increase your credit score is to effectively use CREDIT. This does not necessarily mean racking up a bunch of DEBT. Using a credit card, then paying it off each month is a great start. Having utility bills and other forms of payment responsibility in your name is another. Your credit score is a measurement of your ability to handle credit (not necessarily a balance of debt), so continue to act responsibly by using the credit you have, and your score will increase.

      Here’s one of our articles that touches on these specifics:



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