This millionaire says one simple move will put middle-class Americans on the path to making millions — here's how to put it into action
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A viral TikTok by a user dubbed “Taylor Money” challenged conventional wealth wisdom by dismissing the routine strategy of spending money on things like “bigger houses, bigger boats, bigger cars” and then stashing the rest in a savings account.
According to Taylor, the distinction between the average middle-class mindset and that of millionaires lies in one word: expansion. Rather than spending your money on material upgrades, Taylor believes the true purpose of money is to use it to generate more.
“Only when you start to see money for what it actually is, a method of expansion… a vehicle for your own expansion, then the opportunities to make more money expand, start presenting themselves for you to take,” Taylor explained in the December clip that has garnered almost 3 million views.
Pushing his followers to use money for expansion, Taylor advocates investments known for earning higher annual percentage yields (APYs). While the average APY on traditional savings accounts hovered around 0.46% towards the end of 2023, high-yield alternatives offered rates upwards of 5%, according to Experian.
If you find Taylor’s advice compelling, consider some of these ways you can put that income-generation mentality into action.
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Real estate
“Middle-class people use money as a way to build credit so that they can buy bigger houses, bigger boats, bigger cars, whatever,” Taylor said. “That’s not the function of money.”
If buying a home isn’t the right move for you, there are still ways to invest in real estate to generate passive income and diversify your portfolio.
If you’re looking to invest in properties in a way that doesn’t require you to be a landlord or already have millions in the bank, Arrived might be the right option for you.
Backed by world-class investors, including Jeff Bezos, Arrived allows you to buy fractional shares of vacation and residential rental properties without all the work hassle that comes with having tenants
To get started, you can browse a curated selection of homes, vetted for their appreciation and income potential. Once you find a property that meets your criteria, you can choose the number of shares you want to buy and start investing with just $100.
Read more: Jeff Bezos and Oprah Winfrey invest in this asset to keep their wealth safe — you may want to do the same in 2024
Invest in the stock market
If you want to take a set-it-and-forget-it approach to investing in the stock market, check out Wealthfront. This automated investing platform builds you a personalized portfolio of low-cost index funds from up to 17 global asset classes tailored to your risk profile.
Wealthfront also helps take the stress out of tax time. The platform’s automated tax loss harvesting feature can help you lower your tax bill at the end of the year, giving you more money to invest.
Getting started is simple: after answering a few questions about yourself and your financial goals, Wealthfront will help you optimize your portfolio.
Invest outside the stock market
Private assets have long been considered the domain of institutional investors — but that’s no longer the case.
Consider exploring the vast array of private assets available through Fundrise.
Fundrise offers access to a range of alternative investments, including real estate, private debt, and venture capital, to help you expand your portfolio.
With over 2 million investors and $7 billion in real estate alone, Fundrise offers an accessible entry point for those looking to invest outside the stock market..
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
