By Frank Kamuntu
Working a minimum wage job can feel like you’re constantly spinning your wheels without making any financial progress. But earning less doesn’t necessarily mean your financial dreams are off-limits, according to experts.
“I’ve found that even with a low income, an intelligent way to grow wealth is by being careful with money,” said Kelvin Wira, founder of Superpixel.
“Focus on important things like rent and food, and try not to spend too much on extra stuff.” And try saving a little bit regularly, even if it’s not much.
Here are other expert-recommended ways to make big strides towards building wealth.
Track And Tame Expenses
Miguel Baptista, a manager with Rtivities, said, “Making money on a minimum wage can seem tough, but it’s definitely possible to build wealth with small, smart steps.”
First, he suggests keeping track of every penny you spend. It helps you see areas where you can cut back, like your daily morning coffee run.
“Saving a little bit here and there adds up over time,” Baptista added.
When it comes to tracking and taming expenses, Andrei Vasilescu, co-founder and CEO of DontPayFull, says awareness is key.
“Track every penny spent for a month,” he said. “Categorize and identify potential cuts, even if it’s just skipping that daily latte.”
Every dollar saved is a dollar invested in your future.
Find Ways To Boost Your Earnings
General manager of Coupon Snake, Mafe Aclado believes it would be next to impossible to build wealth on minimum wage without first improving your earnings. Your total and accumulating earnings are the building blocks that ultimately help you build wealth.
“And with today’s inflation affecting the cost of living, feeding and transportation,” Aclado continued, “the fact is, your minimum wage would barely be enough to sustain your immediate needs alone.”
Aclado recommends boosting your earnings through side hustles and passive income streams so you can improve not only your income but also your chances of successfully building wealth.
“The minimum wage doesn’t have to be your ceiling,” said Connor Ondriska, co-founder and E-learning expert at SpanishVIP.
He suggests making it a point to ask for raises, hunt for side gigs — like pet-sitting or delivery — or monetize your hobbies online.
“Offer to tutor kids in your neighborhood, fix bikes for the local cafe or even write catchy jingles,” said Ondriska. “Your skills are gold, mine them.”
Vasilescu also agrees. He said, “Turn free time into income. Tutor online, sell on Etsy, do freelance writing — find your hidden talent and monetize it. Every extra dollar adds up, paving the path to bigger opportunities.”
Invest Like a Boss
According to Ondriska, “Yes, even minimum wage earners can invest.”
He says to ditch the get-rich-quick schemes and embrace the boring, reliable options like low-cost index funds.
“Time is your secret weapon. The earlier you start, the more those little investments snowball,” he explained. “Think of it as planting seeds today for a forest of wealth tomorrow.”
Similarly, Vasilescu notes that time is your best friend.
“Even small, regular investments in low-cost index funds can snowball over years,” he said. “Compound interest is the silent magician that turns pennies into riches.”
Live Below Your Means
Experts agree that to build wealth on minimum wage, you should do everything you can to avoid lifestyle inflation.
“Resist the urge to upgrade your phone just because your friend did,” Vasilescu advised. “Prioritize needs over wants and focus on building your financial buffer. Small sacrifices today lead to big freedoms tomorrow.”
Baptista agrees, noting that living below your means is crucial.
“It’s all about what I need, not what I want,” said Baptista. “This helps me save more money for the future.”
Make the Most of Your Tax Benefits With an IRA
Sam Hodgson, pensions expert at SIPP Advice, said, “Many people, especially younger generations, don’t realize the tax benefits available for your retirement savings. You need to have spare income to put in an IRA, but you can effectively deduct your IRA contributions from taxable income, so you pay less income tax.”
For example, he says if you’re earning minimum wage you can likely contribute the full allowance of $6,000 per year into an IRA, even alongside any 401(k) you have with your employer.
“If you’re paying 12% tax, this could equate to around $720 tax relief each year,” Hodgson added. “It might seem small, but over 40 years of working and being invested in the stock market, this could create a small fortune.”
Think Beyond Money
“Building wealth isn’t just about dollars,” said Ondriska.
According to him, the knowledge and connections you accumulate today might be the key to unlocking higher-paying opportunities tomorrow.
“Invest in yourself. Learn new skills, network like crazy and build a community of support,” he advised. “Devour free online resources, attend workshops and find a financial mentor… The more you know, the smarter your money moves will be.”
Vasilescu similarly said, “Invest in yourself, your health and your relationships. True wealth is a balanced life where financial security gives you the freedom to pursue your passions.”
Building wealth on minimum wage takes discipline, but our experts say it’s achievable.
“Stay focused, celebrate small wins and keep moving forward,” added Vasilescu. “Every step, however small, brings you closer to your financial goals. Start today, and watch your future-self thank you for it.”
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