Set a clear financial baseline and direction
Before you can build wealth, you need to know where you're starting from.
Start by answering these five questions:
A clear view of these financial aspects helps you identify strengths and weak spots in your financial strategy.
"Most people keep disorganized records and have no real sense of their income, expenses or liabilities," says Ian Gardner, the director of Sales and Business Development at Sigma Tax Pro.
"What I've learned after working with countless tax professionals over the years is this: Understanding your financial baseline is the first step to building wealth."
Get comfortable with budgeting
Once you know where you stand, it's time to build the plan for where you want to go. Here is where a well-designed budget comes in.
Oftentimes, we associate budgeting with restricting spending, but you can change the meaning. Don't look at it as cutting expenses, but as giving your money direction.
You can establish whatever budgeting rules work for your needs…
Break the debt cycle
Before you can grow your wealth, you have to identify and stop the financial bleeding, and high-interest debt is often the biggest wound.
Credit cards are the usual culprits here, with average APRs hovering around 20% to 25%, which far outpace what most investments could earn.
If you carry a $5,000 balance at 24% interest and make only minimum payments, you could end up paying more than $7,000 in interest and still owe money years later.
According to an Experian study, Americans carry an average of $6,730 in credit card debt, and more than 40% of cardholders carry a balance month to month. That kind of debt doesn't just hold you back — it quietly erodes your future wealth.
Jason Pack, chief revenue officer at Freedom Debt Relief, puts it well when he says, "High-interest debt seeps into your entire life. We often see clients who delay major life milestones, like buying a home or starting a family, because debt is dictating their decisions.
"Compounding interest and minimum payments can turn a manageable balance into an out-of-control financial spiral before you even know it."
In short, the best thing you can do to start building wealth is to focus on paying off your debt as fast as possible. If you don't know how, consider consulting with a financial advisor.
Earn more, learn more: Your wealth grows as you do
If you're serious about building wealth in 10 years, you can't rely solely on managing spending and reducing debt. These are essential first steps, but you also need to adopt a growth mindset when it comes to income and financial literacy.
This is a lesson you can learn from any successful individual, regardless of their field of interest and goals. Michael Melen, co-founder of SmartSites, emphasizes the importance of having a growth mindset: "This has been one of the most important drivers of success for us. Like most beginners, we didn't have all the answers, but our commitment to learning, improving and staying adaptable helped us move forward. A growth mindset creates momentum."
The same goes for your wealth-building journey. Your commitment to expanding your income capacity and knowledge will be your driver.
Whether you're working a traditional 9-to-5 job, freelancing, or building a business, always look for opportunities to increase your earning potential. That might mean:
Even modest income boosts, such as an extra $300 to 500 a month, can fast-track savings, debt payoff and investing when used wisely.
Financial literacy is a force multiplier
The difference between building wealth with the extra income you earn and blowing it on things that lose value the moment you take them off the shelf lies in knowing how to grow your money.
"Most people don't realize how limited their financial literacy is until it starts costing them," Shawn Plummer, CEO of The Annuity Expert notes. "I've seen smart, capable individuals miss out on thousands simply because they didn't understand basic financial tools.
"But once they become aware, there's often a mindset shift. They get curious, take control, and that's when real progress begins. In my view, financial literacy empowers anyone at any age."
Learn how compound interest works. Understand risk and reward in investing. Get clear on taxes and how to legally minimize them. The more you learn, the more confident (and profitable) your choices become.
You don't have to go back to school for this, but you should consider looking into reliable courses, certifications and talking to personal finance experts. Sure, one hour with a financial consultant is more expensive than listening to respected podcasts, but these are high-return investments in yourself.
The $500 you spend today may give you the knowledge and confidence to earn $5,000 more next year.
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At the end of the day, wealth-building isn't just about what you do with your money — it's about who you become in the process. Financial prosperity is the goal, and you have to think long term. It takes discipline and the consistent exercise of developing habits, using smart tools and making decisions that push you in the right direction.