Just because you don’t have access to millions of dollars doesn’t mean you can’t take advantage of the same money hacks the super rich implement. There are plenty of strategies out there that can work for you, even if you earn an average salary.
According to Abid Salahi, finance expert and co-founder of FinlyWealth, working with clients across different wealth brackets has revealed accessible financial strategies that anyone can utilize. One such strategy is bank bonus harvesting, which mirrors how wealthy individuals maximize idle cash. By moving $5,000 between banks offering new account bonuses, you can earn $1,000 to $2,000 annually. Major banks like Chase and Citi regularly offer $200 to $500 bonuses for new accounts with minimal holding periods.
Credit card reward stacking is another technique that can help boost your finances. By combining a 2% cash-back card for regular spending with targeted 5% category cards, you can generate $1,200 or more yearly on a $30,000 spend. Strategic sign-up bonus timing can add another $1,000 to $1,500 annually.
Nischay Rawal, a certified public accountant (CPA) and founder of NR Tax & Consulting, recommends tax-loss harvesting as a financial hack that anyone can benefit from. This strategy involves selling underperforming investments at a loss to offset capital gains taxes. It’s a technique often used by the affluent, but individuals with a diversified portfolio can also take advantage of it, especially during volatile market periods.
Property tax appeals work at all price points as well. By filing an appeal with comparable sales data, you can reduce assessments by 5-15%. This can save you $300 to $900 annually on a $300,000 home with a 2% tax rate, similar to the technique used by wealthy homeowners on luxury properties.
Utilizing retirement accounts for tax efficiency is another strategy recommended by Rawal. High earners often max out contributions to 401(k) plans and IRAs, taking advantage of any employer matching to build wealth while reducing taxable income. Regardless of wealth level, fully leveraging retirement accounts can secure your future and provide immediate tax benefits.
Zero-based budgeting is a technique that can help maximize savings, similar to what wealthy families do. By assigning every dollar a job and reviewing subscriptions monthly, you can typically find $200 to $400 in monthly savings. This mirrors family office expense auditing at a smaller scale.
In conclusion, there are several money hacks of the wealthy that can benefit individuals across different wealth brackets. By implementing these strategies, you can make the most of your finances and work towards building wealth for the future.
