What does it take to be considered rich? A net worth of around $2.2 million, according to Americans who participated in Schwab’s 2022 Modern Wealth Survey.
What does it take to feel rich? A few financial tools and products you can use, even if you’re on a budget.
From credit cards with luxury perks to money-earning banking accounts and apps, you can give yourself VIP treatment with just a little know-how. Below, CNBC Select outlines several simple ways you can feel wealthy without a couple of million dollars to your name.
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1. Get an investing app
Perhaps one of the best ways to feel better about your financial situation is actively working to improve it — faking it till you make it will only get you so far.
Investing is an essential method of building wealth but it may seem difficult to get into when there’s little room in your budget for it. Plus, as a beginner, you might not know where to start.
An investing app may be a good place to begin. It allows you to automate the process and invest small amounts of money. For instance, Acorns can be a good choice for novices: It lets you put your spare change into diversified ETFs by linking your cards. The app tracks your purchases, rounds up the transaction amounts to the nearest dollar and invests the difference. This way, you can dip your toe into investing without going all in or overloading your budget.
Acorns
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Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum required to open an account, $5 minimum to start investing
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Fees
Fees may vary depending on the investment vehicle selected. Monthly plans include: Personal ($3 per month) and Family ($5 per month)
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Bonus
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Investment vehicles
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Investment options
Diversified ETFs which include more than 7,000 stocks & bonds
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Educational resources
Robinhood
On Robinhood’s secure site
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Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum required to open an account or to start investing
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Fees
Fees may vary depending on the investment vehicle selected. Commission-free trading; regulatory transaction fees and trading activity fees may apply
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Bonus
Robinhood will add 1 share of free stock to your brokerage account when you link your bank account and fulfill the conditions in your promotion (you’ll be able to keep the stock or sell it after 2 trading days)
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Investment vehicles
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Investment options
Stocks, ETFs, options trading, fractional shares, IPOs, plus certain cryptocurrencies through Robinhood Crypto (depending on where you live)
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Educational resources
Webull
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Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum required to open an account or to start investing
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Fees
Fees may vary depending on the investment vehicle selected. Commission-free trading; regulatory transaction fees and trading activity fees may apply
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Bonus
Get 5 free stocks when you open and fund a new account: Sign up with Webull to get your 2 free stocks, each valued up to $300, and deposit any amount to receive 3 free stocks, each valued up to $3,000
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Investment vehicles
Brokerage account: Webull commission-free investing IRA: Traditional, Roth, Rollover IRAs
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Investment options
Stocks, ETFs, options trading, fractional shares, IPOs, ADRs, plus certain cryptocurrencies through Webull Crypto
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Educational resources
2. Let your money earn money
Imagine going about your business — shopping for groceries, filling up your car, paying bills — and earning money while doing that. That surely sounds like something only the top 1% is accustomed to.
In reality, you can do it, too. Most likely, you won’t be earning thousands of dollars per minute like a billionaire CEO, but you can still grow your money without putting in much effort.
Use bank accounts that offer rewards or earn interest. Boost your savings by keeping them in a high-yield savings account. Currently, you can find savings accounts, such as the LendingClub High-Yield Savings or Bask Bank Interest Savings Account, that earn an APY of 4% or higher.
LendingClub High-Yield Savings
LendingClub Bank, N.A., Member FDIC
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Annual Percentage Yield (APY)
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Minimum balance
No minimum balance requirement after $100.00 to open the account
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Monthly fee
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Maximum transactions
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Excessive transactions fee
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Overdraft fees
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Offer checking account?
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Offer ATM card?
Bask Bank Interest Savings Account
Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC.
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
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Excessive transactions fee
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Overdraft fees
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Offer checking account?
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Offer ATM card?
Chase Sapphire Preferred® Card
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Rewards
$50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining, 2X points on all other travel purchases, and 1X points on all other purchases
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Welcome bonus
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
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Annual fee
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Intro APR
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Regular APR
19.74% – 26.74% variable on purchases and balance transfers
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Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
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Foreign transaction fee
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Credit needed
Bilt Mastercard®
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Rewards
Earn points when you make 5 transactions that post each statement period – up to 1x points on rent payments without the transaction fee (up to 50,000 points each calendar year), 3x points on dining, 2x points on travel, and 1x points on other purchases.
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Welcome bonus
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Annual fee
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Intro APR
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Regular APR
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Balance transfer fee
Introductory fee of either $5 or 3% of the amount of each balance transfer, whichever is greater, for 120 days from account opening. After that, up to 5% for each balance transfer ($5 minimum).
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Foreign transaction fee
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Credit needed
American Express® Rewards Checking Account
American Express National Bank is a Member FDIC.
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Monthly maintenance fee
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Minimum deposit to open
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Minimum balance
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Annual Percentage Yield (APY)
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Free ATM network
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ATM fee reimbursement
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Overdraft fee
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Mobile check deposit
Click here to view terms and conditions.
3. Use a credit card concierge
Wells Fargo Active Cash® Card
On Wells Fargo’s secure site
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Rewards
Unlimited 2% cash rewards on purchases
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Welcome bonus
Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
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Annual fee
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Intro APR
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate
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Regular APR
19.24%, 24.24%, or 29.24% variable APR on purchases and balance transfers
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Balance transfer fee
Introductory fee of 3% for 120 days from account opening, then up to 5% ($5 minimum)
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Foreign transaction fee
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Credit needed
4. Travel first class
Concierge services aren’t the only way your credit card can make you feel VIP. There’s a whole range of card benefits designed to enhance your travel experience and take it to the premium level. For example, you can use the points and miles you earn with your travel rewards card to book fancy hotel stays or first-class flights very little — or nothing — out of pocket.
Doing this doesn’t necessarily require a pricey card or a complicated rewards strategy. For instance, at $95 per year, the Capital One Venture Rewards Credit Card gets you 5X miles on hotel and rental cars booked through Capital One Travel and 2X miles on all other eligible purchases.
You can then redeem these rewards at a fixed value of one cent per mile to offset recent travel purchases or cash them in toward booking travel through Capital One Travel. Or, to stretch the value of your miles, you can transfer them to over a dozen different airline and hotel partners. To give you an idea of the redemption possibilities, you could transfer 25,000 miles to Turkish Airlines — which are normally worth $250 toward travel — and book a round-trip domestic first class flight on United Airlines.
Capital One Venture Rewards Credit Card
Information about the Capital One Venture Rewards Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
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Rewards
5X miles on hotel and rental cars booked through Capital One Travel, 2X miles per dollar on every other purchase
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Welcome bonus
Earn 75,000 bonus miles once you spend $4,000 on purchases within 3 months from account opening
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Annual fee
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Intro APR
N/A for purchases and balance transfers
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Regular APR
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Balance transfer fee
0% at the regular transfer APR
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Foreign transaction fee
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Credit needed
5. Skip airport security lines
One of the least luxurious airport experiences is undoubtedly going through a security line. Time is money and there’s nothing VIP about waiting for 20 minutes (or longer) only to rush to take off your shoes, fish a laptop out of your stuffed backpack and then be questioned about the content of your pockets.
All this can be avoided by signing up for an expedited security clearance program. There are three main programs in the U.S. designed to hopefully shorten your time in line:
- TSA PreCheck®: Costs $85 for a five-year membership and gives you expedited security checks at more than 200 airports in the U.S.
- Global Entry: Costs $100 for a five-year membership and gives you full TSA PreCheck benefits, as well as expedited customs clearance upon arrival in the U.S. after traveling internationally.
- CLEAR: CLEAR accelerates airport security screenings by using biometric technology rather than traditional IDs to verify your identity. Once scanned, you will be escorted to the front of the general security line, or to the front of the TSA…
Read More:9 Ways To Feel Rich On A Budget
2023-01-16 02:59:16
