Scott Galloway assured Americans they can attain financial success by investing in ‘forced savings vehicles’
Mayim Bialik / YouTube
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Saving money can be hard, even when you know how important it is. But what if there was a simple, hands-off way to set yourself up for financial success?
Galloway was interviewed by Mayim Bialik of “Big Bang Theory” fame on her podcast “Breakdown” in 2024, and shared some financial advice with listeners. Specifically, he warned that you should be wary if you have an impulse to spend any money you have access to and instead “find forced savings vehicles.”
But what does that mean, and how could it help you improve your finances? Here’s what you need to know.
Galloway explained four common methods of forced savings that are pretty easy to use. As he explained, the U.S. economy runs on a consumption mindset and it’s really hard to fight. Many people can’t resist spending money on material possessions they think will make them happy.
However, you can set yourself up for financial success if you take those dollars away, removing the ability to spend, and instead putting your money into worthwhile assets.
Galloway advised signing up for a program through a bank or finance app that can round up your purchases and deposit the extra change into savings or investment accounts. So if you spend $5.50, your purchase would total $6, and you’d have $0.50 deposited into your savings/investment account automatically.
You can make the most of your spare change with Acorns.
Acorns is an automated investing app that transforms your everyday spending to savings. By simply linking your cards, a process that only takes a few minutes, Acorns will help effortlessly build a diversified investment portfolio, turning small change into significant growth over time.
With over 4.5 million users, and a 4.7 star rating on over 700,000 Amazon reviews, Acorns is a reliable way many Americans spend, save and invest all at the same time. Sign up today and get a $20 bonus investment.
Galloway suggested signing up to have money taken out of your paycheck and put into a tax-advantaged retirement plan — ideally, this would involve employer match contributions. If your employer takes the funds from your check before you receive it, you can’t spend it.
Not all employers offer these types of retirement plans, but you can still benefit from retirement savings with an IRA. One tax-advantaged retirement account to consider is a gold IRA.
Gold has long been touted as a safe haven asset during market uncertainty. Amid persistent inflation, gold prices have reached new heights, now standing at around $4,000 per ounce.
Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
With a minimum purchase of $10,000, Goldco offers will [match up to 10% of qualified purchases in free silver
“A house is forced savings because most people are worried about losing shelter — so they’ll find a way to make their mortgage payment,” Galloway told Bialik. If you commit to a mortgage, each payment builds equity. In the end, you have a valuable asset.
However, with the average 30-year fixed mortgage interest rate hovering around 7%, more Americans are finding it increasingly difficult to afford mortgage payments. If high mortgage rates are making you feel priced out of the market, there are still ways to build wealth in real estate without buying property outright.
You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.
Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.
To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.
While Galloway’s tips are worthwhile, not every American can lock away their money for the long term.
Besides, although gold and real estate can be solid alternative investments, there’s a whole world of stocks out there.
That’s where a broker can come into play to help further diversify your portfolio.
Their easy “set it and forget it” approach means your money is professionally managed and automatically rebalanced, allowing your wealth to grow steadily over time.
Whether you’re saving for retirement, a home or building generational wealth, Wealthfront Invest’s low-cost, automated investing platform can help you achieve your financial goals.
Plus, you can get a $50 bonus if you fund a taxable investment account today.
Taking away the choice of whether to save or not could be a ticket to financial success. Create a status quo where building wealth is the default, and you may just find yourself sticking to it in the long-term.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
