Paula Pant was able to escape the 9-to-5 grind by taking on side hustles to boost her savings and investing her funds wisely. Now, she teaches others how to grow their net worth so that they, too, can achieve financial freedom via her “Afford Anything” podcast.
Whether your goal is to quit your job or just to build long-term wealth, Pant’s tips can help you get there.
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‘Mind the Gap’
Pant, who is one of GOBankingRates’ Money’s Most Influential Women, said that when you are working to build wealth, you need to be mindful of the gap between how much you earn and how much you spend.
“There are only three ways to grow the gap: earn more, spend less or a combination,” Pant said. “Don’t get caught up in thinking that you need some one-size-fits-all x percent savings rate; instead, focus on the actions that make the most meaningful impact on increasing the size of your gap.”
Once you’ve created a gap between your earnings and spending, “invest this gap, then repeat,” Pant said.
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Take Steps To Grow Your Net Worth
Depending on your current financial standing, the best thing you can do to grow your net worth will vary — but you should be doing something that makes an impact.
“This could be making retirement investments, investing towards an income-producing side business or making additional payments beyond the minimum required towards a debt,” Pant said.
Build Passive Income
The best way to build wealth is to increase your earnings — but you should think beyond your 9-to-5 job.
“The most sustainable way to grow your income is to escape the time-for-money exchange, and this comes from building investments that provide a residual income stream,” Pant said. “This includes index funds, rental properties and silent ownership in private companies.”
Jaime Catmull contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Money Expert Paula Pant: 3 Foolproof Ways To Grow Your Net Worth
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