4 Ways To Build Wealth in 2026, According to This Ramsey Expert
The most effective wealth-building approach depends on your risk tolerance, income level and financial goals. More importantly, it depends on your age. The younger you start saving and investing, the more you'll have in the future.
However, regardless of your age, you should be trying to build your wealth all the time by implementing sound money habits. This is easier said than done, but you can teach yourself by looking to the advice of experts who have been through similar budgeting hardships.
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Enter George Kamel, Ramsey Solutions personality, bestselling author of "Breaking Free From Broke" and authority on building wealth through spending less and living debt-free. By taking control of his money and deprogramming himself from the toxic money culture that exists in the United States, Kamel has become a relatable finance influencer that's amassed an impressive net worth for himself along the way.
In a year-end TikTok post, Kamel laid out four ways you should be tackling your money worries so you can start building wealth in 2026.
Spend Below Your Means
Living on less than you make should be the foundation of financial stability and future wealth. However, many Americans are struggling financially, living paycheck to paycheck and racking up debt as they spend more than they earn.
According to LISEP's Minimal Quality of Life index, U.S. workers are struggling with an increase in the cost of living paired with a decrease in spending power. In fact, as CNBC Make It reported, "In 2023, the bottom 60% of households by income fell well short of the threshold for a minimal quality of life," per LISEP's stats.
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If you're serious about making changes to your spending habits, calculate your exact take-home pay, track your expenses for a month and then create a hard budget using a framework like the 50-30-20 rule. This rule stipulates that you spend no more than 50% of your income on needs, 30% on wants and put the remaining 20% toward savings or debt payments.
Cutting spending strategically, increasing income where you can and automating your saving and investing will produce results quicker than you think.
Get Rid of Debt
Billionaires and high-net-worth individuals can afford to build their wealth through taking on loans or using "good debt" to acquire assets and avoid taxes. The average American can't. "Stop thinking that leveraging debt is some kind of wealth-building hack," said Kamel.
You simply can't build wealth when you're constantly paying off interest to banks and credit card companies. "Ditch debt. All of it," said Kamel. "Student loans, credit cards, car payment. We're getting rid of this stuff to free up our greatest wealth-building tool, our income."
If used strategically, personal loans can be a wealth-building tool, but for the most part, regular interest payments are a trap and shouldn't be an option for regular wage earners. We all know that high-interest credit card debt eats up your margin, but we contribute to it all the time -- sometimes out of necessity, sometimes out of poor self-control.
Debt-busting methods like the debt snowball (smallest balance first) or debt avalanche (highest interest first) work, but you have to stick to their strategies. This year, prioritize paying debt or risk staying broke.
Go Against the Flow
Realizing financial freedom takes a lot of time and hard work. Along his journey, Kamel "learned that if you want to win with money, figure out what most people are doing...and run in the other direction."
Unless you are singularly skilled at timing the market, picking the right stocks or "crypto-ing the right coins," Kamel insists that you keep it simple.
"You gotta stop following the trends and the 'money hacks' that broke people are doing. Stop believing that your credit score is an indicator of your financial health. You can have an 800 score and not have $800 in the bank. That's a bad financial plan."
Maximize Your Retirement Income
Kamel has become a trusted financial voice by focusing on lean spending and smart investing. "There's a lot of wrong ways to do it. You gotta do it the right way," he said.
But which way is right? Like many successful advisors, Kamel believes that the most practical way to building wealth is to fund a retirement account. After you've built an emergency fund and ditched any outstanding debt, "all you need is a retirement account, like a 401(k) or a Roth IRA. That's what real millionaires use to build wealth," said Kamel.
And it's not too late to to boost your confidence and retirement contributions. Writing for CBS News' MoneyWatch, Tim Maxwell noted, "If you are 50 or older and haven't saved as much as you'd like in an individual retirement account (IRA) or 401(k), you may be able to deposit more than the normal limit allows by making catch-up contributions."
This is the year to make some serious decisions about your finances. Whether you choose to follow Kamel's advice is up to you, but you shouldn't ignore his underlying message: "Do not put this off. Get started now. The earlier the better."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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