Investing Investing Basics

15 Ways To Build Wealth Without Buying Real Estate

Explore 15 alternative avenues to secure your financial future, no real estate required.

By Adam Palasciano

Edited by Eric McWhinnie

Updated Dec. 17, 2024

Real estate has been a traditional path to wealth, but it's not the only one. There are many ways to build wealth and stop living paycheck to paycheck without investing in property.

Here, we explore 15 strategies to accumulate wealth, from conventional methods to innovative approaches.

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Invest in ETFs (exchange-traded funds)

Exchange-traded funds (ETFs) are a smart choice for those looking to build wealth without the commitment and hassle of real estate.

These investment vehicles pool money from multiple investors to buy a diversified portfolio of assets like stocks, bonds, or commodities.

They offer diversification, liquidity, and typically lower costs than traditional real estate investments.

With ETFs, you can spread your risk and benefit from market gains while avoiding the complexities of property ownership.

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Invest in individual stocks, bonds, and commodities

Investing in individual stocks, bonds, and commodities provides a direct path to wealth accumulation without the need for real estate.

Stocks offer ownership in public companies, allowing you to benefit from their growth and dividends. Bonds, on the other hand, are fixed-income securities that can generate regular interest income.

Commodities, like gold or oil, offer diversification and can act as hedges against inflation. These investments are highly liquid, making it easier to buy and sell.

Start a business

Launching your own business can be a potent wealth-building strategy. As an entrepreneur, you have the potential to create substantial income and value.

While it involves risks and hard work, successful businesses can provide substantial returns, making it a favored method to accumulate wealth. It also offers the freedom to shape your financial future and steer your professional path according to your vision and objectives.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.25% (as of 11/15/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

Live below your means

Living within or beneath your means is a fundamental principle for wealth accumulation. It's not about deprivation but about smart financial management.

By spending less than you earn, you can save and invest the surplus, which can grow significantly over time. This approach reduces debt, prevents financial stress, and enables you to channel your money into various wealth-building avenues.

Never carry credit card debt

Credit card interest rates can be a substantial financial burden. Avoiding credit card debt is a critical wealth-building strategy.

Pay your credit card balances in full every month to prevent high-interest charges from accumulating. You'll save money on interest and maintain a healthy credit score. This allows you to access better financial products and interest rates when needed.

Invest in your education

Education is one of the most potent wealth-building tools. Consider advancing your skills or pursuing higher education. This investment can significantly increase your earning potential over time.

Whether taking additional courses, earning an advanced degree, or gaining certifications in your field, each step enhances your marketability and earning capacity.

Grow Your $$: 11 brilliant ways to build wealth after 40

Negotiate a higher salary

One of the most direct ways to increase your wealth is to negotiate a higher salary. Many individuals leave money on the table by not engaging in this crucial conversation with their employers.

When seeking a raise or a starting salary for a new job, research industry standards, showcase your achievements, and confidently present your case.

Even a moderate boost in your salary can substantially impact your savings and investment potential, accelerating your wealth-building journey.

Change jobs for large pay increases

Changing jobs strategically can be a powerful wealth-building move. Many individuals find that the most significant salary increases come when they transition to a new employer.

As you accumulate experience and skills, your market value rises. When you jump to a new position, you can often negotiate a higher salary or take advantage of a competitive job market. This can lead to substantial pay increases that directly contribute to your wealth.

Get rid of your car

For many, owning a car is a significant monthly expense. If you live in an area with robust public transportation or can use ride-sharing services, selling your car could free up a substantial portion of your budget.

This saves you money on car insurance, car payments, fuel, maintenance, and repairs. Redirecting these funds toward investments can significantly boost your wealth over time.

Earn up to a $300 bonus and grow your money with up to 4.00% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 4.00% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account or overdraft fees⁵ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $2 million on deposits is available through a seamless network of participating banks.⁶ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a> Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a>

Open your SoFi account and set up direct deposit

Invest in REITs (Real estate investment trusts)

Real estate investment trusts (REITs) are a clever way to benefit from real estate without owning properties. REITs allow you to invest in a diversified portfolio of income-producing real estate, such as office buildings, apartment complexes, and shopping centers.

They typically offer high dividends and the potential for capital appreciation. With lower entry costs than buying physical properties, REITs are an accessible option for many investors.

Build an online business

The digital age has ushered in a remarkable opportunity for wealth creation through online businesses. From ecommerce stores to content creation platforms and service-based enterprises, the web offers a myriad of business prospects.

Starting an online business requires minimal overhead compared to traditional brick-and-mortar establishments. You can launch a business from the comfort of your home with a computer and internet connection.

Explore crowdfunding and peer-to-peer lending

Crowdfunding and peer-to-peer lending platforms have revolutionized how people invest and raise capital.

These platforms connect entrepreneurs and individuals seeking funding with potential investors.

As an investor, you can diversify your investment portfolio by contributing to various projects or lending to individuals in exchange for interest payments.

While there are risks involved, these platforms offer opportunities for substantial returns on your investments.

Supercharge your investments: See what could happen if you add fine art to your investment portfolio

Become a freelancer or consultant

The gig economy has surged, offering individuals a unique path to make extra money.

As a freelancer or consultant, you can leverage your expertise, skills, and experience to offer services on your terms.

This allows you to diversify income streams, take on multiple clients, and potentially increase your earnings significantly. You have the freedom to set your rates, choose clients, and dictate your schedule.

Invest in yourself

One of the most powerful wealth-building strategies is to invest in yourself. This means continuously enhancing your skills, knowledge, and personal development. It could even include investing in the best tools to help you do your job or expand your business.

It's an investment with limitless returns, as the more you grow, the more you can earn. Self-investment often leads to increased confidence and a greater capacity to tackle financial challenges.

Take advantage of remote work policies

Remote work has become increasingly prevalent, providing opportunities to save money and enhance your financial well-being.

With the freedom to work from anywhere, you can potentially reduce expenses related to commuting, work attire, and dining out. The money saved can be redirected into investments or used to get out of debt, ultimately boosting your wealth.

Bottom line

Real estate isn't the only path to wealth. You can improve your financial fitness through various strategies by diversifying your investments and embracing financial discipline.

Whether investing in stocks, starting a business, or exploring innovative income streams, building wealth without property is a realistic and achievable goal.

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Invest in Paintings by Basquiat, Picasso, Banksy

Masterworks Benefits

Invest in art like a millionaire for a relatively low cost
Art investments have outperformed the S&P 500 by over 131% for 26 years
Purchase shares of artwork by top artists
Hedge against inflation and diversify your portfolio

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