5 No-Nonsense Tips for Building Wealth

Photo credit: iStockphoto.com (bortonia)

This Financial Literacy Month, having a clear, confident action plan to take control of your money and build lasting wealth is especially helpful. And who better to hear from on that than Vivian Tu, also known as Your Rich BFF?

At the heart of her advice is the memorable framework, STRIP, which stands for addressing Savings, Total debt, Retirement, Investing, and Promotion. 

Here’s how she broke it down in her appearance at the Pennsylvania Conference for Women: 

S = Savings.

Start by building an emergency fund, and make sure your money works for you. Tu recommends moving savings to a high-yield account offering 4–5% APY. She also stresses automating your savings by splitting your paycheck. She suggests the seven-day rule to curb impulse spending: add the item to your cart, close the tab, and revisit later. “If you can’t remember the URL, you just saved money.”

T = Total Debt.

“Debt is not a four-letter word—yes, it is, but not that kind,” Tu said. Her advice? Treat debt as a financial tool, not a personal failure. She recommends the avalanche method—paying down debts with the highest interest first: “Would you rather your debt disappear like a snowball—or like an avalanche?” Balance transfer cards and personal loans can also help reduce interest and make debt more manageable.
R = Retirement.

“Your retirement plan cannot be, ‘I’m going to marry rich,’” says Tu. She emphasizes taking full advantage of retirement accounts—401(k)s, IRAs, and employer matches. Start early, even with small amounts, and let compounding do the heavy lifting.

I = Investing.

Rather than trying to pick the perfect stock, Tu recommends index funds and ETFs for broad diversification.

P = Promotion.

“It’s not the smartest person who gets paid the most. It’s the person who’s best able to advocate for themselves.”Tu encourages keeping a “brag book”—a folder for saving your wins, metrics, and praise all year. “You can’t argue with stats, facts, math, numbers,” she says.