Author: Vishesh Raisinghani

After 10 years of building up a career as a medical assistant in Atlanta, Georgia, Desiree Hill felt trapped. Not only was she earning just $38,094 a year, but the job was getting increasingly stressful.

“It was long hours,” she told CNBC Make It. “It was three hours of commuting in Atlanta traffic everyday and I never saw my children, so it really was taking a toll.”

Then came the breaking point: a divorce that forced her to find new ways to support her family.

But what started as a desperate side hustle — buying a beat-up $1,200 truck and teaching herself how to fix it via Google and YouTube — soon became something much bigger. That first flip netted her $4,000.

By 2020, she had repaired and flipped more than 38 cars, enough to convince her it was time to quit her day job and go all-in.

Today, the 39-year-old runs Crown’s Corner Mechanics, a full-service auto repair shop in Atlanta with five employees. Her business brought in $440,000 in revenue in 2024 and her journey has drawn more than 120,000 TikTok followers.

Want to follow in her footsteps? Here’s how she turned a DIY hustle into a six-figure business — and how you can too.

Don’t miss

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Start with small experiments

Hill says she decided to try flipping cars because it was a relatively cheap side hustle. “I knew it was something I could spend a very small amount on and maybe, potentially, make a lot of profit,” she says.

Instead of spending thousands of dollars on professional training or buying a repair shop, Hill started with a small experiment — repairing a used truck she managed to purchase for just $1,200.

If you’re looking to switch your career or start your own business, low-cost experiments can help you test the waters and see if the new venture is the right fit, before overcommitting. If the experiment fails, you can walk away without any permanent damage to your financial situation.

Don’t quit your job right away

Although she made a sizable profit on her first flip, Desiree didn’t quit her medical assistant job right away. Instead, she kept building her skills for several years while also working full time.

“I came home, made dinner, got my children all set for bed… and then I went to the [garage] and started working on the vehicles,” she says. “Sometimes it lasts until 2-3 in the morning and then I get right back up at 6am and go to work.”

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Launching a business as a side hustle — dipping your toes, instead of diving in headfirst — is a smart, low-risk way to test the waters. And it’s more common than ever: nearly 52% of workers now report earning extra income from a side hustle, according to The Wall Street Journal.

Like Hill, if your side hustle starts to gain immense traction, you could consider leaving your job. But if it doesn’t, you could still benefit from the additional income.

Build an online presence

Hill says she initially started sharing her journey online just to track her progress, but it quickly gained more traction than she anticipated. Today, her 120,000 TikTok followers have become a major source of new customers.

In today’s economy, using digital marketing and social media as part of your business strategy is absolutely essential. Nearly 48% of consumers surveyed by Salesforce said they prefer using social platforms to learn about small businesses. With that in mind, spending some time and money to build up even a modest social presence could help your DIY business immensely and help fuel your side hustle’s future growth.

What to read next

• You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

For many retirees, a cruise is a once-in-a-while indulgence but for 77-year-old Sharon Lane, it’s now home.

Don’t miss

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

In June, the retired foreign language teacher from Orange County moved into a cabin on the Villa Vie Odyssey, described as the world’s first perpetual cruise ship, according to NBCLA and CNN.

The contract enables her to make the cruise ship her permanent address for the next 15 years, an arrangement that Lane says is a better deal for her. Prior to this, she was renting a home in the Laguna Woods retirement village.

“Not only was it affordable to me, it would actually cost me less money to live here like this, have everyone taking care of me instead of me taking care of everybody," she said to NBCLA.

Her unconventional move highlights how the cost-of-living crisis in some states has spiraled out of control and why more retirees should consider moving to save money.

Cheaper than California

Unlike a typical cruise, the Villa Vie Odyssey is a residential cruise ship. That means customers don’t book short trips but purchase a cabin on the ship, which has an estimated lifetime of 15 years, according to CNN.

Lane used her life savings to purchase an inside, windowless cabin, for which prices start at $129,000. She also has to pay $3,000 in monthly fees. This includes food, soft drinks, alcohol at dinner, Wi-Fi, and medical visits. Entertainment, room service, weekly housekeeping, and bi-weekly laundry are also provided at no additional charge.

“All the chores you do in life? Done!” Lane told NBCLA. “If you put your to-do list on a piece of paper and you cross off anything that wasn’t a fun activity, then you end up with the life we have now.”

Not only is this convenient, but it may be cheaper than living in the Golden State.

The average rent for a one bedroom apartment in Laguna Woods, where Lane was formerly living, is $2,325, according to Zumper.The average rent for a studio apartment in the state is $1,856, according to Apartments.com.

This means it’s possible Lane’s monthly expenses would have been higher than her cruise cabin if she decided to live in an apartment in California.

However, it’s important to note that as she gets older she may need more assistance with daily tasks and medical care. It’s unclear if such perpetual cruises will be able to provide for the needs of such retirees. Lane may also find it difficult to participate in excursions as she gets older.

CNN says those who purchase long-term cabins on Odyssey do have the option to sell. In such a situation, Lane would need to get a good price and consider senior housing. The median monthly cost of assisted living in California is $5,561, according to A Place for Mom.

Altogether, Lane’s decision to set sail on a perpetual cruise may seem financially savvy, but complications could arise.

For those who get easily sea-sick or are otherwise nervous about spending years on a ship, there are other ways to save costs in retirement.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Should you consider a move too?

Relocating could be the best way to save costs in retirement, but you don’t need to book a cabin on a never-ending cruise.

Instead, moving to a new state with relatively lower costs of living could be a more conventional approach to retirement.

States like Missouri, Wyoming, Tennessee and Arizona can offer lower taxes, cheaper real estate and affordable living costs, according to the Institute of Financial Wellness.

A Place for Mom says median independent living costs can be as low as approximately $2,250 per month depending on the state. It’s $3,500 a month in California.

You could also consider moving to another country to unlock a more comfortable retirement.

According to the International Living’s Global Retirement Index for 2025, Panama, Spain and Malaysia are some of the top options for American retirees seeking a cheaper lifestyle.

Whether you swap zip codes, cross international borders, or opt for a floating home on a cruise ship, changing your address in retirement can help cut expenses and upgrade your quality of life.

But don’t overlook the emotional side — being near family and friends often matters just as much as money. If your social circle is a top priority, you could consider aging in place despite the costs.

What to read next

• You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Lulu Simon, the daughter of music icons Paul Simon and Edie Brickell, took to Instagram to share her story of property-related heartbreak involving Hollywood legend Richard Gere.

She says that the Pretty Woman star assured her parents that he would “take care of the land” when he purchased the family’s six-bedroom Connecticut mansion in 2022.

But just two years later, Gere decided to flip the home to a developer for $10.75 million amid his move to Spain, according to People. The property is now being demolished to make way for a massive new development.

“Just in case anyone was wondering if I still hate Richard Gere — I do!” Lulu wrote on Instagram. There’s no public record of any legal obligation preventing redevelopment, but the emotional betrayal clearly struck a nerve. Gere has not publicly responded to the post.

Although she didn’t clarify if the sale agreement had any redevelopment restrictions built into it, her story highlights the pros and cons of selling your family home to developers, institutions or professional property investors.

Don’t miss

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Pros of selling to professionals

If you’re listing your home on the market, there’s a significant chance that you might get an offer from a professional developer or investor. In 2024, roughly 13% of homes were purchased by investors, according to Realtor.com.

These could include landlords, developers, private investment companies or real estate investment trusts. What they all have in common is that they’re buying the home to make a profit rather than live in.

Generally, these investors are well capitalized and have a readily-available pool of capital or robust relationships with lenders to finance the purchase.

Nearly 62% of small investors and 68.9% of large investors paid all-cash for their transaction, according to Realtor.com. That means you can get paid quickly with minimal disruption.

Another advantage of selling to professionals is that you don’t need to invest much in renovating or upgrading your property. Professional buyers often target tear-downs, where they can add value through redevelopment.

Speaking of value, a strategic investor could also deliver a better offer for your property than a typical family because of the redevelopment potential. This gives you a chance to exit at a premium.

However, it’s also worth considering some of the downsides of selling your home to a developer or investor.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Cons of selling to professionals

Taking into consideration the emotional cost of selling to developers and real estate investors is one of the biggest factors that can come into play in a situation like this. Seeing your childhood home or marital property turned into an Airbnb or corporate headquarters isn’t easy, especially if you have pleasant memories attached to the home.

The decision could also impact your relationship with your neighbors and the wider community. Demolition and construction is often fairly disruptive and could shift the neighborhood’s character in a way that frustrates your friends.

There’s also some financial downsides. For instance, you could be leaving some money on the table when you sell to a developer rather than hiring a company to redevelop the property yourself.

Self development gives you exposure to more cash flow and greater control. It could also offer you some flexibility to preserve some of the most cherished aspects of your home.

What to read next

• You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

According to the 2025 Northwestern Mutual Planning & Progress study, the average American now believes they need $1.26 million to retire. That’s $200,000 less than they said they needed last year and nearly the same as the figure quoted in 2022.

The fact that the target hasn’t moved much in the last three years hasn’t made it more accessible, however. The vast majority of U.S. adults are still falling short of this benchmark and are hurtling towards a difficult and uncomfortable retirement. Here’s why, and what you can do to help yourself reach that figure.

Don’t miss

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Lack of savings and investments

Although most Americans agree that they need to enter the seven-figure club to retire comfortably, only a small fraction of the population has actually achieved this target.

As of 2024, the U.S. was home to 7.9 million millionaires, according to Capgemini Research. That’s roughly 3% of the country’s total adult population, which means that 97% of Americans haven’t yet reached millionaire status. And keep in mind: that figure includes people of all ages and wealth levels, not just those nearing retirement. Several factors contribute to this shortfall. While some Americans may not prioritize retirement savings, many face barriers that make it difficult to set aside money, including rising housing costs, student loan debt and inflation. Even those who are diligently saving can find it challenging to keep up with the growing cost of a comfortable retirement.

Starting early is key to saving for retirement

Although 97% of people aren’t millionaires, many could meet that target eventually if they start investing at a young enough age.

A 20-year old, for instance, needs to invest just $330 a month into an asset class that delivers a steady 7% annual return to reach $1.26 million by the time they turn 65. Having the luxury of time significantly boosts your chances of becoming a millionaire.

This doesn’t mean it’s too late for middle-aged savers, but it takes a significantly greater investment. If a 50-year-old hasn’t started saving for retirement, they’d need to invest $3,958 a month at a steady 7% return to reach $1.26 million by retirement.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

The real ‘retire comfortably’ number will be unique to your situation

Saving $1.26 million doesn’t guarantee a comfortable retirement for everyone. For example, if your net worth is $1 million but your annual living expenses are $200,000 or $300,000, you need much more than $1 million in savings to continue living the same lifestyle in retirement.

In fact, two thirds of millionaires don’t consider themselves “wealthy” and half of them say their financial planning needs improvement, according to another study by Northwestern Mutual. In short, being a millionaire doesn’t mean you’re ready for retirement.

If you live in a state or another country with a lower cost of living, your target might be smaller. According to Empower’s calculations of tax burdens and costs of living, states like Alaska and New Hampshire might be ideal for retirees looking to minimize their expenses. Try using a retirement calculator or consulting a financial planner to determine your personal target. With enough time and meticulous planning, you can be on track for almost any type of retirement you might want.

What to read next

• You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Older Americans have a lot to keep an eye on as they age — from health concerns to financial planning to long-term care. But one risk that’s often overlooked is the threat to their personal information.

Sharing too much about your finances, legal matters or health — even with close friends or family — can leave you vulnerable to fraud, manipulation or unintended consequences.

Here are five things you should never reveal unless you’re speaking with a trusted professional, and the reasons why keeping them private matters.

Don’t miss

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Your net worth or salary

Older Americans hold the majority of the nation’s wealth — nearly 73% of it, according to SmartAsset. That makes them a prime target for scammers, fraudsters and even opportunistic acquaintances.

Criminals often zero in on retirees and older Americans because of their financial standing. And according to the FBI, seniors and retirees lose roughly $3 billion annually to fraud.

When others know the details of your financial situation, like your salary, savings or net worth, it can increase your exposure to theft, manipulation or financial abuse.

To protect yourself, keep that information private unless you’re working with a licensed financial advisor or another trusted professional.

Passwords and other sensitive personal information

Relying on family for tech support is common, but handing over your passwords, PINs or login details can put you at serious risk.

Whether it’s your banking credentials, Medicare account, or even just your email password, sharing that access opens the door to mistakes, misuse or, in worst cases, exploitation.

Cybercrime is on the rise among older Americans, with criminals targeting seniors who may be less familiar with online security practices. And once your personal information is out there, it’s incredibly difficult to rein it back in.

To stay safe, never share passwords unless it’s absolutely necessary. The more tightly you guard your digital life, the less vulnerable you are to scams and identity theft.

Power of attorney

A power of attorney (POA) can be a smart and necessary tool as you age. It allows someone you trust to manage your affairs if you’re ever unable to do so yourself. But it’s also one of the most commonly misused legal documents.

Granting someone POA gives them broad authority to act on your behalf, which can include accessing your bank accounts, selling property or making medical decisions. And when that authority falls into the wrong hands, it can lead to serious financial harm or even elder abuse.

According to Carefull, misuse of power of attorney is a leading method of financial exploitation among older adults. Even well-meaning family members can overstep, especially if they feel entitled to manage your affairs their way.

To protect yourself, don’t rush the process. Work with a qualified attorney to create a POA that clearly outlines limits and responsibilities. Only assign this role to someone you trust implicitly, and review the document regularly to ensure it still reflects your wishes.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Details of your will

Your will and estate plan contain some of your most sensitive information, from a full list of your assets to exactly who will receive what. In the wrong hands, those details can be used against you.

Scammers may see your estate plan as a blueprint for potential fraud, while even well-meaning relatives might try to influence your decisions once they know what’s at stake. In some cases, that pressure can turn into manipulation or financial abuse.

In fact, a survey published in the Journal of General Internal Medicine found that the most common perpetrators of financial exploitation of seniors were family members at 57.9%, followed by friends and neighbors at 16.8%.

To avoid putting yourself in a vulnerable position, don’t share the details of your will with anyone who doesn’t need to know. Keep those conversations between you, your lawyer and your executor — and make sure everything is stored securely and updated regularly.

Mental health or other health-related issues

As we age, health issues involving memory or cognitive function can become more common. Unfortunately, this can also make older adults more vulnerable to exploitation.

A study published in the National Institute of Justice Journal found that cognitive decline is closely linked to an increased risk of fraud. When others are aware of your mental health challenges, it can open the door to manipulation.

This doesn’t mean you should hide your health concerns. But it does mean you should be thoughtful about who you share them with. Stick to medical professionals and a small circle of trusted loved ones. Put protections in place, like legal safeguards and a medical power of attorney, to ensure your wishes are honored no matter what.

Protecting your personal information is just as important as protecting your physical health or financial assets, especially as you get older. By keeping sensitive details private and working only with qualified professionals, you can safeguard your independence and avoid unnecessary risks down the line.

What to read next

• You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

For many Canada, the magic number for retirement is $1.54 million according to a BMO survey, and the standard retirement age in Canada is 65.

In other words, most people are trying to get into the seven-figure club by the time they reach their 60s. But you could be on track to retire earlier than that, perhaps with less money than you initially anticipated.

Here are the top five signs that you’re on track to afford to retire earlier than you think.

No mortgage or consumer debt

Retiring or approaching retirement with a debt burden is surprisingly common. According to Statistics Canada, Canadians ages 55 to 64 have an average of $80,600 in debt.

As you can imagine, this isn’t a comfortable way to retire. You can’t enjoy your golden years in peace if you’re up at night thinking about interest rates and the global economy.

This is why paying off all your debt — including your mortgage — puts you in a better position than the majority of seniors and could allow you to retire sooner than you expect.

Diversified streams of cash flow

Most retirement plans hinge on typical sources of income such as interest, dividends or pension benefits.

However, if you have a plan that incorporates more sources, perhaps rental income from properties or passive income from a side venture, your finances are much more robust than the average retiree.

If you’re trying to retire before you turn 65, finding new sources of passive income could be essential.

Relatively high savings rate

As of the first quarter of 2025, the average personal savings rate in Canada is 5.7%.If you and your family are saving more than that, it could be a green signal that you’re approaching retirement faster than most of your peers.

Firstly, a higher savings rate can get you to your goal quicker. For example, someone who only saves 4.5% of their $100,000 income and invests it in an asset that delivers 10% annual growth can reach $1.7 million within 46 years. If this person can double their savings rate to 9%, they can get to $1.7 million in less than 34 years.

Not only does a higher-than-average savings rate help you achieve your goals faster, it also indicates a more stable retirement. It’s a sign that you have the willpower and discipline to live below your means and stick to a budget, which are essential skills for retirees on a fixed income.

Empty nest with no financial assistance

Having dependents reshapes your financial situation and could be the deciding factor for whether or not you can retire. This is why many parents have to wait until their children are adults and have their own sources of income to consider retiring.

Unfortunately, the housing and cost-of-living crisis has pushed many adults to rely on their parents for support.

According to a TD survey from 2024, 57% of Canadian parents expect to financially support their children after they become adults.

If you’re part of the remaining 43% — with independent children or none at all — you’re in a better position to retire earlier.

Good health

Healthcare costs, especially ones not covered by the country’s universal healthcare system, can make or break your retirement, especially once you are no longer eligible for employer-sponsored health insurance. A serious medical issue or the need long-term care can ultimately derail your financial plan.

However, if you have managed to take better care of yourself, perhaps by quitting smoking, limiting alcohol or regularly exercising, you could qualify for lower health insurance premiums while also being less exposed to risk.

Simply put, good health is a key ingredient for a cheaper, earlier and more enjoyable retirement.

Sources

1. BMO: BMO Retirement Survey: Over Three Quarters of Canadians Worry They Will Not Have Enough Retirement Savings Amid Inflation (Feb 12, 2025)

2. Statistics Canada: Assets and debts held by economic family type, by age group, Canada, provinces and selected census metropolitan areas, Survey of Financial Security

3. Statistics Canada: Current and capital accounts – Households, Canada, quarterly

4. TD Stories: Nearly 3 in 5 Canadian parents expect to financially support their children after they become adults, but most aren’t confident in their ability to do so, new TD survey

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

It’s easy to think that once you crack six figures, you’re in the clear financially. But that assumption doesn’t always hold up. One-third of Americans earning over $200,000 a year say they’re still living paycheck-to-paycheck, according to a 2024 report by PYMNTS Intelligence.

Turns out wealth isn’t just about how much you earn, it’s about how you think and what you do with it.

Don’t miss

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Here are the top five ways wealthy people approach life, career and finances differently from the rest of us.

Subtle about their wealth

Contrary to popular belief, most multimillionaires are not cruising around in neon orange Lamborghinis or smoking cigars stashed in their Gucci bags. Instead, many wealthy Americans are trying to hide their wealth rather than flaunt it.

The “stealth wealth” or “quiet luxury” trend was highlighted in the 2024 National Millionaires Survey by Ramsey Solutions, which found that the top three car brands preferred by the wealthy were Toyota, Honda and Ford.

Simply put: wealthy Americans stay wealthy by resisting the urge to flaunt it.

Delayed gratification

Another major psychological difference between the rich and the poor is their ability to delay gratification.

In 2016, the National Bureau of Economic Research surveyed Americans over the age of 70 to see how much extra they’d need to wait a year for $100. Would they need $10 or $30? Those who required less compensation had greater patience and were better at delaying gratification, which was closely linked with their actual wealth and financial well-being.

In short, the ability to resist instant gratification is a key sign of future financial success.

Spend money to make money

Because they’re better at delaying gratification, wealthier Americans are more likely to invest their money rather than spend it.

A 2024 Gallup poll found that 31% of upper-income Americans believe stocks are the best investment. Only 7% said a savings account was a good investment.

In contrast, 20% of lower-income Americans chose savings accounts as the best investment, while just 14% preferred stocks.

This difference in strategy highlights a key mindset shift. Many lower-income households avoid risk and prefer safety, while wealthier households are more familiar with the potential rewards of riskier assets.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Leverage debt skillfully

Debt isn’t good or bad — it’s all about how it’s used.

Lower-income households are more likely to rely on expensive forms of debt to cover daily spending. About 18% of households earning between $25,000 and $49,999 used buy-now-pay-later programs in 2023, compared to just 10% for those earning more than $100,000, according to the Federal Reserve.

Wealthier Americans tend to use debt for productive investments, such as real estate or business ventures. These assets have the potential to grow in value, while consumer goods like cars or electronics lose value over time.

Rethinking how you use debt could be a game-changer on your path to building wealth.

Pursue lifelong learning

In a constantly shifting economy, wealthier individuals know the key to preserving and growing wealth is to keep learning new skills and adapting to unexpected changes.

Whether it’s signing up for professional courses, attending workshops and expanding your horizons, could give your career the boost it needs to step up wealth creation.

What to read next

• You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

On paper, Jackson’s debt-free status and $200,000 annual salary might look like an easy ticket to financial freedom.

But in reality, the 25-year-old heavy-duty mechanic from Canada admits he’s often staring at a bank account that doesn’t reflect his hard work or financial progress.

Don’t miss

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

“I get my paychecks and I pay my bills with it and then I don’t look at my account all that much,” he said on a recent episode of The Ramsey Show. “I just kind of know there’s always a good chunk of change in there and it usually fluctuates between $15,000 and 25,000.

“But it’s not really going ahead from there because I’m kind of just living, you know?”

Jackson’s situation isn’t unusual, but celebrity finance personality Dave Ramsey believes his “healthy disgust” with his lack of progress at such a young age certainly is. Here’s why many high-income people struggle to accumulate meaningful wealth.

Biggest mistake rich people make

Jackson’s difficulty holding onto his high income isn’t unique. Roughly 36% of Americans earning more than $200,000 a year say they live paycheck to paycheck, according to a 2024 study by PYMNTs.

Among those in this income bracket, 22.8% cited family expenses as the top reason they can’t save money. Another 17% pointed to poor saving and financial habits as the main reason they live paycheck to paycheck.

Lifestyle creep and untamed budgets appear to drive many people to spend as much — or even more — than they earn. According to Ramsey, the biggest mistake high earners make is a lack of intentionality with their money.

Jackson, however, is determined to avoid that mistake.

“I feel like I make too much money to not have some sort of a plan and I don’t want to feel like a fool who squanders a fortune,” he tells Ramsey, who responds with a compliment: “Just asking the question puts you in the top 5%, dude.”

Ramsey’s advice? Start with a robust budget.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Give every dollar a job

According to Ramsey, the only way to be intentional with your money is to set up a spending plan before the income arrives.

“We’re going to write it down — before the month begins — where every dollar is going to go,” he told Jackson. “Give every dollar an assignment. Contract with yourself. If you have a spouse, do it with your spouse.”

A tight monthly budget should help Jackson earmark cash for necessary expenses, discretionary spending, taxes and emergencies — and ideally leave extra for savings and investments. Working with a financial planner would also be ideal.

Unfortunately, only 27% of Americans use professional help for investment advice and services, according to a 2024 YouGov survey.

Most aren’t doing this work independently either. Just two in five Americans said they have a monthly budget or closely monitor their spending, according to the National Foundation for Credit Counseling.

In other words, a robust, professional budget is rare, which helps explain why living paycheck to paycheck is so common. You can avoid the same pitfalls by hiring a professional or setting up a solid budget of your own.

What to read next

• You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.