Americans are constantly rethinking what it means to build wealth. In 2025, we will witness rising home prices, debt, and new technology reshaping the economy, but the path to financial security seems more confusing than ever.
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According to Charles Schwab’s 2025 Modern Wealth Survey, Americans believe it takes an average net worth of $2.3 million to be considered wealthy.
So what strategies do people turn to? Do they really work? Here are five of the most common wealth-building measures this year, along with what financial experts think about them.
Despite rising prices and interest rates, many Americans still consider buying a home one of the clearest paths to wealth. According to a 2025 LendingTree survey, 36% of Americans say homeownership is their top wealth-building strategy.
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Sam Dogen, founder of Financial Samurai, told MarketWatch in July 2025: “No asset, including real estate, should exceed 50% of overall net worth. Homeowners should aim for their homes to represent 25% to 30% of net worth at retirement, diversifying investments into stocks, bonds and other assets.”
Bottom line: A home can be a powerful wealth generator, but it shouldn’t dominate your portfolio. Keep housing in a balanced proportion of your net worth and diversify into other assets.
Retirement accounts like 401(k)s and IRAs remain the backbone of wealth creation. Vanguard’s How America Saves 2025 found that most workers are letting professionals or automated funds manage their 401(k)s, and nearly half are putting more of their paychecks toward retirement than before.
“Long-term passive investing is truly sustainable,” said Jay Zigmont, CFP and founder of Childfree Trust. “For my clients, I tend to recommend a three-fund portfolio that includes the entire U.S. stock market, the international stock market, and bonds.”
“I would recommend simply dollar-cost averaging into a mutual fund or ETF that tracks a known index like the S&P 500. Consistency and patience are the virtues associated with building wealth over the long term,” said Robert R. Johnson, CFA and professor of finance at Creighton University.
Conclusion: Yes, this strategy is worth joining. Experts agree that investing consistently is better than chasing trends.
Americans are saving, but not always in the smartest ways. According to a 2025 LendingTree survey, 29% of respondents say they use online savings accounts as part of their wealth-building strategy. However, a Santander survey revealed that 69% do not use higher yield accounts such as HYSA, CDs or money markets.
“If it’s below 3%, you should look. You should find a vehicle that has a better rate than that,” Kate Byrne, head of Cash Plus distribution at Vanguard, told Business Insider.
Bottom line: High-yield savings accounts are smart for emergency funds and short-term goals. Just don’t confuse saving with investing.
Can you be rich with debt? The LendingTree survey found that 66% of Americans believe it can be done, and 31% say only if it involves mortgage debt. Mortgages are considered wealth-generating because they increase equity, while high-interest consumer debt depletes it.
Zigmont emphasizes that paying off debt is one of the fastest wealth generators. “The key is to get out of debt and stay out of it,” he said. Paying off balances, he adds, offers a guaranteed, tax-free return, something not even the stock market can promise.
Conclusion: Eliminating high-interest debt should be a top priority before pursuing other strategies.
But for those looking to the future, new tools like artificial intelligence and cryptocurrencies remain tempting options.
Technology is the wild card. LendingTree found that 39% of men believe AI will improve their chances of building wealth, compared to 22% of women. Cryptocurrencies also remain popular among younger and higher-income Americans, although many are unsure whether they help or hurt.
Johnson is skeptical. “One of the biggest wealth creation trends I am seeing is speculation in cryptocurrencies. Now I say speculation because it is a misnomer to categorize any commitment of funds to cryptocurrencies. It is simply speculation as traditional valuation tools cannot be used to value cryptocurrencies.”
He warns against chasing hype: “The biggest mistake is exactly that: they try to follow trends. The biggest driver of herd behavior is FOMO: the fear of missing out. In my opinion, this is what is driving much of the current cryptocurrency mania.”
Carry: Cryptocurrencies are not an investment, they are speculation. If you really want to build wealth, treat it as a gamble, not a long-term plan.
Trends come and go, but experts say real wealth is built slowly. Johnson recalls Warren Buffett’s philosophy: “Jeff Bezos once asked Warren Buffett, ‘You are the second richest man in the world, and yet you have the simplest investment thesis. How come others didn’t follow this?’ To which Buffett responded: ‘Because no one wants to get rich slowly.’”
In short, wealth in 2025 isn’t about being first on the next hot trend: it’s about discipline, patience, and letting compounding do the heavy lifting.
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This article originally appeared on GOBankingRates.com: 5 Ways Americans Are Building Wealth in 2025: Should You Join Them?
