\u201cThe strategy you use at one point is not necessarily the strategy that\u2019s going to get you to that next level,\u201d Maggiulli said on a recent episode<\/a> of \u201cCommon Cents on the Prairie,\u201d\u2122 the Sioux Falls-based podcast from First National Wealth Management.<\/a><\/p>\n That\u2019s why Maggiulli is sharing three solutions for climbing the wealth ladder, which can help you improve your financial life while growing your wealth.<\/p>\n What is the wealth ladder?<\/p>\n The wealth ladder, as Maggiulli laid out in his new book,<\/a> comprises six levels of wealth based on your household net worth.<\/p>\n \u201cThat\u2019s all your assets minus all of your liabilities,\u201d Maggiulli said. \u201cSo that\u2019s going to be everything you own: your house, your car, cash in your bank accounts, your stocks and retirement accounts \u2026 minus any debt you have.\u201d<\/p>\n The six levels he outlined are:<\/p>\n Level one: Less than $10,000 What does \u2018climbing the wealth ladder\u2019 mean for me?<\/p>\n \u201cEvery wealth level has what I call some sort of spending freedom,\u201d Maggiulli said.<\/p>\n To calculate yours, you can use the 0.01 percent rule.<\/p>\n \u201cYou take your net worth, you multiply by 0.01 percent \u2026 and that is the amount of money that your wealth is generating every day,\u201d he said.<\/p>\n For example, a net worth of $100,000 would give you $10 of spending freedom, meaning you could spend $10 every day without thinking about it.<\/p>\n \u201cI think following the 0.01 percent\u00a0 rule is an easy way to say, hey, if I want to spend more, if I want to get to what I call travel freedom in level four, then I need to have the financial discipline to build a million dollars in wealth,\u201d Maggiulli said.<\/p>\n 3 solutions for climbing the wealth ladder<\/p>\n If you\u2019re looking to attain that next level of spending freedom such as grocery freedom, restaurant freedom or travel freedom, Maggiulli has a few ideas on how you can climb the wealth ladder.<\/p>\n \u201cAll the data I\u2019ve seen in all of personal finance suggests that it\u2019s your income that is building wealth, not how much you can cut your spending,\u201d Maggiulli said.<\/p>\n Don\u2019t take that the wrong way; saving is still a major aspect of a healthy financial life.<\/p>\n But if you\u2019re looking to level up on the wealth ladder, your best chance is by increasing your income rather than trying to save more.<\/p>\n \u201cYou can only cut spending so far,\u201d Maggiulli said.\u00a0\u201cWith your income, there is, in theory, no limit.\u201d<\/p>\n The typical advice for someone who is behind on their retirement savings, according to Maggiulli, is naturally to start saving more.<\/p>\n \u201cThat\u2019s just, like, the mathematically obvious answer,\u201d he said. \u201cIf you don\u2019t save any money, you\u2019re not going to have anything for retirement, so it\u2019s obvious that you have to save more. I don\u2019t think that\u2019s an insightful answer.\u201d<\/p>\n Maggiulli\u2019s solution?<\/p>\n \u201cI think you should actually start exercising more,\u201d he said.<\/p>\n Not only is exercise good for your health and lifespan, but it can help you increase your working years so you have more time to earn money.<\/p>\n \u201cYou didn\u2019t save early on in your career for one reason or another \u2014 don\u2019t beat yourself up over it,\u201d Maggiulli said. \u201cYou can\u2019t change that now. You\u2019re here, so what can you do now? Exercise more to improve your health, so that you can work more years later.\u201d<\/p>\n It might not sound like a great solution, having to work until you\u2019re 70 rather than 60 or 65.<\/p>\n To that, Maggiulli said: \u201cThere\u2019s no shortcut here. There\u2019s no magic wand I\u2019m going to have that\u2019s like, oh, just do this and all that money is going to show up. \u2026 The only way I know how that\u2019s basically guaranteed to work is to give yourself more time.\u201d<\/p>\n \u201cI think there (are) a lot of times when it comes to building wealth where an individual\u2019s ego is actually preventing them from either building more wealth or keeping the wealth that they have,\u201d Maggiulli said.<\/p>\n Appeasing your ego often equates to spending on things you don\u2019t need or can\u2019t really afford, like a luxury car or designer clothes.<\/p>\n According to Maggiulli, these behaviors lead to lower savings rates and, therefore, lower wealth accumulation.<\/p>\n \u201cWhen you think about that, like the people in level three that try to spend as if to show like they\u2019re in (level) four \u2026 they could end up holding themselves back because they don\u2019t have a sufficient income to support that lifestyle,\u201d he said.<\/p>\n By letting go of your ego and turning spending behaviors into saving habits, you can give yourself a better chance to move up a level on the wealth ladder.<\/p>\n To learn more about Nick Maggiulli\u2019s tips for climbing the wealth ladder, watch the full podcast episode<\/a> at the player below. Or, you can listen on Apple Podcasts<\/a> or your favorite streaming app.<\/a><\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/07\/Nick-Maggiulli-Common-Cents-On-The-Prairie-S7E7-1200x800-1.webp.webp\")
<\/a><\/p>\n
\nLevel two: $10,000 to $100,000
\nLevel three: $100,000 to $1 million
\nLevel four: $1 million to $10 million
\nLevel five: $10 million to $100 million
\nLevel six: More than $100 million<\/p>\n